Whatsapp Co-Founder Still Harvesting $450 Million Stock Rewards

Last Updated:

Earlier this year, about four months ago WhatsApp Co-founder, Jan Koum; announced his decision to leave Facebook and also step down from his position as a member of Facebook’s board of directors.

In 2014, Facebook shocked the world when it bought WhatsApp for $19 billion.

When Koum announced his plans to leave, there were reports that he could be losing out on as much as $1 billion if he leaves before his stock award fully vests.

After already selling about $7.1 billion worth of his shares in Facebook, it is clear that Koum knows what he’s doing. He has continued showing up to the office so as to collect one final lucrative payday: a massive $450 million in Facebook stock.

This is one of the examples of a Silicon Valley practice known as “resting and vesting”.

 

Koum’s Announcement in April

In Silicon Valley vocabulary, resting and vesting refer to when rich and wealthy entrepreneurs or engineers who are on their way out of a tech company, are allowed to stick around until their equity in the company is fully vested.

Silicon Valley’s act of resting and vesting is a culture that is real and can be described as an “open secret”.

An episode in the HBO show “Silicon Valley” mimicked this act; when engineers spent time relaxing and enjoying themselves on a roof without doing any work.

Vesting periods are typically four years after which the whole stock grant is given to the employee in question. Koum has only one vesting date left for the year which is scheduled for November.

The Wall Street Journal reported that Koum paid a visit to Facebook’s offices in mid-July. Which means that he has completed one requirement in his employment contract.

 

The Reason For The Spat

Koum’s decision to leave Facebook was reportedly due to a disagreement about data privacy and the messaging app’s business model. There were also reports that the spat had gone on for several months before he made his announcement.

Both Koum and his co-founder, Brian Acton (who left the company last year), are dedicated privacy advocates; who have always been concerned about the privacy and protection of the app’s users.

When they announced the sale of WhatsApp four years ago, they promised their users that their data would be preserved and never shared.

In 2016, WhatsApp doubled down on its pledge by adding encryption of user data in its services.

This makes Koum’s departure from the company quite unusual. The management and board of directors of the company have stayed faithful and committed; despite the scandals and troubles the company has gone through.

Koum is also the only founder of a startup acquired by Facebook who became part of the board members.

Ultimately, Koum and Acton were worn down by the differences in approach; their reasons for leaving Facebook are more ideological than financial.

Megan Turnbull
Megan Turnbull
Megan Turnbull is a political entrepreneur, commentator, and writer. She uses her wealth of experience to provide audiences with vantage views of both the political and non-political world, dishing out shrewd, tried and true information and guidance for a better business and a better world.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Craig David Net Worth

What is Craig David's net worth?  Introduction   Craig David is a...

Queen Latifah Net Worth

What is Queen Latifah's net worth? Introduction  As of ,...

Fred Wilpon Net Worth

What is Fred Wilpon's net worth?  Introduction  Fred Wilpon is an...

A.J. Green Net Worth

What is A.J. Green's net worth? Introduction  As of ,...

Steve Dahl Net Worth

What is Steve Dahl's net worth?  Introduction  Steve Dahl is a...

Melissa McCarthy Net Worth

What is Melissa McCarthy's net worth? Introduction  As of ,...

Latest Net Worth Profiles

Jimmy Wales Net Worth

What is Jimmy Wales' net worth?    Introduction  Jimmy Wales is an...

Ricky Van Veen Net...

What is Ricky Van Veen's net worth?  Introduction  Ricky Van Veen...

RZA Net Worth

What is RZA's net worth?  Introduction  RZA is a famous American...

T-Bone Burnett Net Worth

What is T-Bone Burnett's net worth?  Introduction  T-Bone Burnett is a...

Tom Arnold Net Worth

What is Tom Arnold's net worth?  Introduction  Tom Arnold is an...

Kelis Net Worth

What is Kelis' net worth?  Introduction  Kelis is an American singer...

Larry Holmes Net Worth

Larry Holmes is one of the greatest heavyweight boxers of the modern era, who earned a fortune from his skill in the ring.

Lance Stroll Net Worth

Lance Stroll is the son of a billionaire and has earned a fortune already as a Formula One racing driver and Grand Prix winner.

Troy Van Leeuwen Net...

What is Troy Van Leeuwen's net worth?  Introduction  Troy Van Leeuwen...

Tiffany New York Pollard...

What is Tiffany New York Pollard's net worth?  Introduction  Tiffany New...