As CEO of both Twitter and Square, Jack Dorsey has likened a choice between the two companies he co-founded to a choice between his children, according to a source to Re/code. Although Dorsey has no real children, let's follow that metaphor.
While papa Dorsey guides Square, toward an IPO, he's been busy laying off 8% of his Twitter's workforce, cutting 336 jobs, 240 of them at Twitter's San Francisco headquarters.
That doesn't seem like very fair parenting.
And consider this: Over the past two years at Square, Dorsey has given 15 million shares, about 20 percent of his equity, back to the company, and just last week he committed 40 million more shares, about 10 percent of the company in its entirety and a full half of his personal stake in Square, toward a new foundation that so far will work to help artists, musicians, and small businesses in the city of Ferguson, Missouri.
So kinda owing it to Twitter while still being awfully generous, Dorsey announced he's giving a third of his Twitter stock, or one percent of the company, back to employees, placing it in the employee equity pool.
🐥⚡️ 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
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
Yes, what the Verge calls a "morale boost" project, might be just that — but that isn't a bad thing. They put the value of the morale boost, by the way, at about $200 million.
CNET notes that before the reinvestment Dorsey held a 3 percent stake in the company. With a 6.8 percent stake, co-founder Evan Williams is the company's largest stockholder. Other large shareholders include Steve Ballmer, former Microsoft CEO, and a Saudi Prince.
Twitter will announce third-quarter earnings next week on Oct. 27, Bloomberg observes, and plenty of pundits will watch to see how the new move plays with investors.