Twitter CEO Jack Dorsey says he plans to give about one-third of his Twitter stock, or 1 percent of the company, to Twitter’s employees.
But hold on. There’s a method to Dorsey’s madness. He figures a share in the company will give his employees a greater stake in its success. And he may be right.
Dorsey made a similar move in December 2013 at Square, the online payments processor he co-founded and where he also serves as CEO. He gave 10 percent of his shares back to Square employees.
Then, more recently, Dorsey said he would donate some 40 million shares of Square to charity. Dorsey’s intentions were included in filing for Square’s initial public offering with the Securities and Exchange Commission.
Now, Dorsey is focusing his largess on Twitter employees, explaining in a tweet, appropriately enough:
??? 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
A minute later, he added:
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
Dorsey has about 22 million shares of Twitter. His generosity toward Twitter’s employees is worth around $200 million, published reports indicate.
Dorsey’s effort, in addition to creating additional wealth for Twitter’s employees, will likely serve as a morale booster following Twitter’s recent round of layoffs, the company’s first mass layoff in its nine-year history.
Small business owners seeking to show their own employees how valued they are can look to Dorsey for inspiration. But you don’t need to be a 38-year-old billionaire to show your employees you value each and every one of them.
What are some ways you’re showing your employees that you appreciate them?
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I think it is wise. I would do it if I have a big enough of a business. Sharing always wins in the end. It is just not a normal concept to adopt but it works.
It is all good, as long Mr. Dorsey is doing it by free will. Do you think that the employees will be more loyal now and stay at Twitter?
Why not. Charity is what the world need most right now. Besides, 1 bln net worth is more than enough to live like a king. The rest couple of billions are much more needed by different socially oriented organizations than just rotting in your bank account.