Twitter Inc Chief Executive and co-founder Jack Dorsey said he is giving a third of his stock in the company, about 1 percent, to the employee equity pool. A Reuters report said that the move, worth $197 million as of July 28, is to "reinvest directly in our people.".
🐥⚡️ I'm giving ~1/3rd of my Twitter stock (exactly 1% of the company) to our employee equity pool to reinvest directly in our people.— Jack (@jack) October 23, 2015
Twitter has been in a crisis mode with several high-profile exits and confusion about how the company would monetize its network, inspite of a having 300 million users.
Dorsey announced last week that the company would lay off 336 employees, about 8 percent of its workforce, in an attempt to streamline Twitter's products and teams.
Dorsey, who took over as interim CEO in July after Dick Costolo resigned, also tweeted his motive.
As for me: I'd rather have a smaller part of something big than a bigger part of something small. I'm confident we can make Twitter big! ✌️— Jack (@jack) October 23, 2015
Closer home in India, Dorsey's move is reminiscent of a certain Rahul Yadav, who was co-founder and once the most well-known name of techno-real estate company Housing.com.
This May, Yadav who'd resigned and then withdrawn his resignation gave away his personal stake of nearly Rs 200 crore in Housing.com. According to the Economic Times, that worked out to nearly 4% of the company's valuation. After all this, Yadav was finally fired on the 1st of July by the company's board.
The common elements between Housing.com of that time and Twitter now were reports of a jitteriness among employees of both companies. Similar to what Yadav had then stated, Dorsey intent too is to "boost the morale" of employees. Coincidentally as co-founders of their companies both Yadav and Dorsey had similar, relative stakes--4% and 3%--in their companies and shortly after Yadav's exit, reports emerged of Housing.com planning to lay off nearly 600 employees or about a 24% of its strength. The 300-odd employees that Twitter is laying off is less than 8% of its workforce and hopefully, we've already unreasonably stretched the similarities between the two companies.Suggest a correction