Twitter just hired Omid Kordestani, formerly the chief business officer at Google, to be its new executive chairman.
The step comes as Twitter wants to redouble as well as maintain costs down. New irreversible CEO Jack Dorsey merely revealed Twitter (TWTR, Tech30) was laying off 8 % of its personnel on Tuesday.
Yet based upon just how much Kordestani was making at Google, it might have cost Twitter a king’s ransom to obtain him ahead on board.
Kordestani was among the very first staff members at Google (GOOGL, Tech30). He left the firm in 2009 yet came back to become the chief company policeman last August. He was rewarded handsomely upon his return.
Related: Twitter cuts 8% of its workforce
According to Google’s yearly proxy filing for 2014, Kordestani received virtually $130 million in compensation in 2013. That made him Google’s highest-paid worker.
Kordestani obtained a prorated annual wage of $236,500, a perk of $6.5 million and also stock awards worth greater than $123.5 million.
Based on in 2014’s prorated salary, it appears reasonable to presume that at a bare minimum, Kordestani likely made concerning $500,000 for his 10 and a half months function at Google this year also. That does not include a pay raise either.
A spokesperson for Twitter said that the company would reveal Kordestani’s settlement in an SEC filing at some point within the following few days.
It was not immediately clear how much Kordestani would be leaving at Google, which is currently component of a bigger parent firm referred to as Alphabet. Kordestani’s departure worked immediately.
A spokesperson for Google declined to comment on what would certainly occur to Kordestani’s stock payment.
“We’re excited for Omid as well as quite pleased for Twitter. Omid contributed in establishing Google’s business and assisted us create actually close, historical collaborations across the industry,” the speaker claimed. “We wish him every success in the years in advance.”.
Related: Twitter names Jack Dorsey as CEO
But money issues aside, that Twitter was able to draw away Kordestani is a piece a surprise. Kordestani’s return was widely hailed by Silicon Valley as an excellent move for Google.
Kordestani was called “the heart of Google” in a tale by Re/Code last year. And also Kordestani, together with new Alphabet/Google CFO Ruth Porat, likewise won goes crazy from experts for just how they dealt with the company’s last incomes conference call in July.
Google’s stock rose complying with those results, and shares are up almost 30 % this year. Twitter, on the other hand, has dropped nearly 20 % until now in 2015.
Twitter has actually rebounded dramatically given that Dorsey formally took the top job. Twitter additionally promoted its commonly revered earnings principal Adam Bain to be COO.
As well as the business simply unveiled a brand-new attribute called Minutes that allows Twitter individuals to much more quickly comply with large information events live.
So Twitter’s future appearances brighter currently compared to it did simply a few weeks back. But Kordestani is still leaving a tried and tested champion for a business that continues to be an underdog.
Twitter has been penalized by financiers considering that it doesn’t have as several users as social networks king Facebook (FB, Tech30). Heck, it no longer has as lots of customers as Facebook subsidiary Instagram.
Dorsey has recognized that Twitter needs to do a far better task of being easier to comprehend for rookies so it can draw in much more individuals.
As well as given that Kordestani has actually been employed as an exec chairman, one would think he will certainly be asked ahead up with concepts of his own to improve Twitter as well. He will certainly be involved in the daily procedures.
Related: Twitter launches Moments
Yet there has actually already been objection of Kordestani due to the fact that he hasn’t been a prolific tweeter.
People pointed out– on Twitter naturally– that Kordestani has actually only tweeted a lots times considering that joining the solution in March 2010. As well as four of those tweets were written Wednesday after the information of his hire was announced.
Still, Kordestani’s ties to Google may defeat his absence of tweeting. Twitter and also Google have created a much deeper partnership recently. Tweets now show up instantaneously in Google search results, for instance.
It’s obvious that both Twitter and Google/Alphabet encounter an awesome hazard from Facebook.
There were even some vague rumors that Google might wish to buy Twitter as Twitter’s CEO search dragged out this summer.
That no longer promises. However it wouldn’t be a big shock to see Twitter and Google working a lot more carefully.
Currently we merely have to find out how much Kordestani deserves to Twitter … and if he could justify the most likely huge paycheck he got for leaving Google.
