Twitter’s Anthony Noto is getting a hefty stock package worth up to $12 million per year to take on a larger role as Chief Operating Officer of the struggling internet company.
A Twitter spokeswoman told Business Insider on Wednesday that the package “reflects his increased role and responsibilities as COO” and is meant to align with “the interests of our shareholders.”
Noto, who has served as Twitter’s finance chief for the past two years, has presided over a tumultuous period at the company marked by slowing growth, multiple management shake-ups and a sharp decline in the company’s stock price.
Twitter announced plans to lay off hundreds of staffers last month as it tries to cut costs and revive its business.
Twitter’s stock is currently down about 20% from its 52-week high and is down roughly 75% from its all time high of $74 after its 2013 IPO.
Noto is replacing longtime Twitter COO Adam Bain, who announced his sudden departure from the struggling social network earlier this month. Now that Noto has been promoted from CFO to COO, Twitter is awarding him a new stock package that vests over a four year period, the company said in an SEC filing on Wednesday.
The former Goldman Sachs investment banker and ex-Army Ranger is receiving a total of 940,000 restricted stock units and 325,000 performance-based restricted stock units as part of his new pay package. The package has a “total compensation target” of $12 million per year, Twitter said.
“Anthony’s executive compensation package reflects his increased role and responsibilities as COO and was designed with the assistance of an independent outside consultant to align with the interests of our shareholders, incentivize growth and value creation, and be competitive with peer and industrywide practices,” a Twitter spokeswoman said.
“His compensation includes a mixture of restricted and performance-based stock options, which only grant upon certain financial and operational performance metrics,” she added. “Approximately 96 percent of Anthony’s compensation is in stock, which underscores Anthony’s alignment with shareholders and commitment to generating enhanced value.”
New severance deal
In addition to his new stock package, in the event that Noto is fired, he will get 100% of his $250,000 base salary in severance, instead of the 50% portion that he was previously entitled to. Twitter noted that Noto will get the severance in the event he is involuntarily terminated for is involuntarily terminated for any reason, including “by him for good reason,” other than cause, death or disability.
The rich compensation package may not sit well with shareholders at a time when Twitter’s business is struggling and following the company’s failed efforts to sell itself earlier this year.
And Noto compensation has raised eyebrows before: The lavish $73 million total compensation package he received when he was hired by Twitter in 2014 caused rumblings among many insiders at Twitter, where top executive salaries had previously been capped at $200,000 for many years.
Noto “will continue to lead the live content business and assume responsibility for Twitter’s revenue-generating organizations as well as global partnerships and business development and other functions,” according to the SEC filing.
Twitter is looking for a new CFO to replace Noto, who is still currently serving as COO and interim CFO.
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