By Pascal Oparada
Social Media/Tech Reporter
Jack Dorsey, Twitter CEO, earns next to nothing for his contributions to the social media platform.
According to the company filling published on Monday, Dorsey earned $1.40 as his salary in 2018 to run the company. He declined all other benefits and compensation for the year, Business Insider reports.
The meagre sum is in keeping with previous years when Dorsey rejected all payment at all.
Analysts believe the $1.40 is symbolic given Twitter’s origin as a social network that allowed only 140 character updates, now extended to 280 characters.
“CEO Compensation of $1.40. As a testament to his commitment to and belief in Twitters long-term value creation potential, our CEO, Jack Dorsey, declined all compensation and benefits for 2015, 2016 and 2017, and in 2018 he declined all compensation and benefits other than a salary of $1.40,” the statement on the filing said.
This does not mean that Dorsey is poor, though.
According to a filing in 2017, he holds 16 million Twitter shares worth $557 million at the current share price.
He also earns money from his second job as CEO of a payment firm, Square.
He sold Square stock through 2018 worth $80 million, according to Forbes.
He is not the only tech heavyweight to decline a salary.
Facebook’s CEO, Mark Zuckerberg takes an annual salary of $1, while Elon Musk, Tesla CEO, has vowed not to take a salary until his company hits $100 billion market cap.
Snapchat CEO, Evan Spiegel also earns $1, although he takes stock compensation and other benefits.
Analysts believe the idea behind the low salary is to show these CEOs have faith in their companies, as all four are major shareholders in their firms.
Ev Williams, Twitter’s co-founder and another major shareholder, did take home more from the company in 2018.
According to the filing, he took $275,000 as his fee in 2018 and sold off Twitter stock through 2018. Twitter announced Williams was stepping off the board in February.
Another board member, British entrepreneur Martha Lane Fox, took home $70,000 in fees and stock awards worth $225,000. A third, former Google CFO Patrick Pichette, earned $80,000 in fees and $225,000 in stock awards.