Adobe caused a stir on Wall Street and in Silicon Valley when it announced on Thursday that it was buying design software startup Figma for $20 billion. But the deal is far more expensive for Adobe, due to a historic retention package for CEO Dylan Field and employees worth $2.3 billion at the time of announcement — more than $1 billion of that for Field alone.
The additional compensation comes in the form of six million restricted stock units, or RSUs, that vest over four years, Adobe disclosed in its deal announcement. But half of that is earmarked specifically for Field alone, two sources with knowledge tell Forbes. And Adobe initially offered Field more, the sources add, before the CEO settled upon a roughly even split with staff.
Adobe did not respond to a request for comment on Field’s retention package. A Figma spokesperson declined to comment on Field’s and Figma’s behalf.
At Adobe’s announced acquisition price of $20 billion in cash and stock, the overall retention package would be worth about $2.3 billion. With shares of Adobe trading down more than 20% since the news, the deal would stand today at $18 billion, with $1.7 billion in additional retention comp.