Twitter CEO Dick Costolo saw his net worth surge after resigning from the social media giant — and it wasn’t a payout to thank him for his good work. Investors who were happy to hear he’s leaving snapped up shares in the company, boosting the value of Costolo’s stock and options.
Twitter shares rose 3 percent in pre-market trading, with a corresponding jump in Costolo’s 800,000-plus shares and 8.2 million stock options yielding a gain in wealth for the departing executive of $11.2 million. The shares were off their early highs, but still up in mid-morning trading.
It’s a rare up day for Twitter, which has lost 30 percent of its value this year. Market enthusiasm sent shares sky high at Twitter’s initial public offering in late 2013, but petered out as the company failed to attract sufficient advertisers or roll out new products fast enough. Disappointing financials last quarter highlighted the company’s troubles and ramped up pressure on Costolo, who announced his resignation Thursday.
Twitter chairman and co-founder Jack Dorsey — who’s portfolio shot up almost $29 million since the announcement, according to CNN Money — will serve as interim CEO starting July 1, while the company searches for Costolo’s replacement.