Under a new plan, non-employee directors will make up to $16 million for their first year of service on Twitter's board. October 23, 2013 2:27 PM PDT (Credit: James Martin/CNET) It pays to be a member of Twitter's board. The soon-to-IPO social network disclosed that its outside directors, who have never been paid in cash for their services, will soon be the beneficiaries of a generous equity incentive plan that comes with up to $16 million in cash and stock for the first year of service. The compensation plan was added to Twitter's latest S-1, which was also amended Tuesday to include details on a $1 billion line of credit and the financials for MoPub. Related posts Biting tweets get White House official fired Twitter secures $1 billion credit line ahead of its IPO Top tweets on Apple's iPad event Twitter's board consists of seven men, six of whom are non-employee directors eligible for an annual payday of up to $8 million in cash and stock for their service on the board. The outside directors include co-founder and former CEO Evan Williams, who already holds a 12 percent stake in Twitter, and co-founder and chairman Jack Dorsey. Peter Chernin, Peter Currie, Peter Fenton, and David Rosenblatt are the other non-employee board members. It's unclear from the language if this group of outsiders are eligible for the substantial first-year award of $16 million. Either way, Twitter is paying far more than Facebook. The bigger social network pays most of its outside board members $50,000 a year. Facebook's newest board member, Susan Desmond-Hellmann, was given a $50,000 annual retainer fee and 20,000 restricted stock units valued at around $530,000 at the time. Twitter's disclosure, first spotted by Footnoted, is listed on page 135 of the S-1 and included in full below. Our 2013 Plan provides that all outside directors will be eligible to receive all types of awards (except for incentive stock options) under our 2013 Plan. In connection with this offering, we intend to implement a formal policy pursuant to which our outside directors will be eligible to receive equity awards under our 2013 Plan. Our 2013 Plan provides that in any given year, an outside director will not receive (i) cash-settled awards having a grant-date fair value greater than $4,000,000, increased to $8,000,000 in connection with his or her initial service; and (ii) stock-settled awards having a grant-date fair value greater than $4,000,000, increased to $8,000,000 in connection with his or her initial service, in each case, as determined under GAAP. [via The Wall Street Journal]
Under a new plan, non-employee directors will make up to $16 million for their first year of service on Twitter's board.
(Credit: James Martin/CNET)
It pays to be a member of Twitter's board.
The soon-to-IPO social network disclosed that its outside directors, who have never been paid in cash for their services, will soon be the beneficiaries of a generous equity incentive plan that comes with up to $16 million in cash and stock for the first year of service.
The compensation plan was added to Twitter's latest S-1, which was also amended Tuesday to include details on a $1 billion line of credit and the financials for MoPub.
Related posts
- Biting tweets get White House official fired
- Twitter secures $1 billion credit line ahead of its IPO
- Top tweets on Apple's iPad event
Twitter's board consists of seven men, six of whom are non-employee directors eligible for an annual payday of up to $8 million in cash and stock for their service on the board. The outside directors include co-founder and former CEO Evan Williams, who already holds a 12 percent stake in Twitter, and co-founder and chairman Jack Dorsey. Peter Chernin, Peter Currie, Peter Fenton, and David Rosenblatt are the other non-employee board members.
It's unclear from the language if this group of outsiders are eligible for the substantial first-year award of $16 million. Either way, Twitter is paying far more than Facebook. The bigger social network pays most of its outside board members $50,000 a year. Facebook's newest board member, Susan Desmond-Hellmann, was given a $50,000 annual retainer fee and 20,000 restricted stock units valued at around $530,000 at the time.
Twitter's disclosure, first spotted by Footnoted, is listed on page 135 of the S-1 and included in full below.
Our 2013 Plan provides that all outside directors will be eligible to receive all types of awards (except for incentive stock options) under our 2013 Plan. In connection with this offering, we intend to implement a formal policy pursuant to which our outside directors will be eligible to receive equity awards under our 2013 Plan. Our 2013 Plan provides that in any given year, an outside director will not receive (i) cash-settled awards having a grant-date fair value greater than $4,000,000, increased to $8,000,000 in connection with his or her initial service; and (ii) stock-settled awards having a grant-date fair value greater than $4,000,000, increased to $8,000,000 in connection with his or her initial service, in each case, as determined under GAAP.
[via The Wall Street Journal]
