Elon Musk denies reports of him firing Twitter employees to avoid a $100 million payout
Elon Musk denies reports of him firing Twitter employees to avoid a $100 million payout
Elon Musk has refuted rumors that he is firing Twitter staff before November 1 to avoid having to pay a $100 million fine.
Elon Musk, the company’s new owner, has refuted media allegations that Twitter might fire workers before November 1 to avoid having to pay a $100 million fine.
Musk wrote, in response to a Twitter user who inquired about the layoffs, “This is incorrect.” Workers were supposed to receive stock awards as part of their compensation on November 1, according to The New York Times.
Musk reportedly ordered job cuts across the corporation, with some teams to be reduced more than others.
The Times reports that layoffs could begin as soon as this Saturday, citing unnamed sources. Musk started his Twitter career by letting go of several of the company’s top executives, who he accused of lying. Parag Agrawal, the CEO of Twitter, Vijaya Gadde, the company’s general counsel, and Ned Segal, the chief financial officer, was the first executive’s Musk fired after taking over. Musk also posted a tweet claiming, “the bird is liberated,” after purchasing Twitter. Through his tweet, Musk expressed that the “bird,” which serves as a logo, has been set free. Musk had previously expressed his wish to make Twitter a free platform.
According to unnamed persons with knowledge of the situation, The Information stated that Elon Musk fired four best Twitter executives, including Parag Agrawal and Segal, “for reason,” apparently to avoid paying severance and vested stock awards. According to the news agency, LightShed analyst Rich Greenfield claimed that Musk sacked top Twitter executives “for reason,” delaying the vesting of their unvested stock as part of a change of ownership.
In a statement to Reuters on Friday, Courtney Yu, director of research at Equilar, said that the ousted executives “should be collecting these (severance) payments Unless Elon Musk’s termination was due to a breach of law or violation of company policy.”
Elon Musk is set to take over, and Twitter’s top executives will leave with $100 million payouts.
Bloomberg News estimates that Chief Executive Officer Parag Agrawal, who took over the position less than a year ago, is qualified to receive about $50 million.
Three of Twitter Inc.’s senior executives who allegedly lost their jobs after Musk’s severance and dividends from previously given equity incentives will reach more than $100 million after he completes his takeover.
According to calculations by Bloomberg News, Chief Executive Officer Parag Agrawal, who assumed the position less than a year ago, is qualified to get about $50 million. Ned Segal, the chief financial officer, and Vijaya Gadde, the head of legal, policy, and trust, are expected to get around $37 million and $17 million in compensation, respectively.
The three and other significant Twitter executives were among those who left when Musk assumed leadership of the social media behemoth on Thursday, according to sources with knowledge of the situation. Their departures mark the conclusion of more than six months of public and legal struggle, which culminated in Musk, the richest man in the world, assuming the CEO position.
According to the provisions of the company’s severance policy, if Twitter was acquired and they lost their positions. As a result, Agrawal and his lieutenants were entitled to severance pay equal to a year’s salary plus cash-outs of unvested stock awards. Additionally, Twitter is required to pay each employee’s annual health insurance payments, which come to around $31,000.
The unfairness of giving leaders golden exit packages while giving regular employees critics often point out that people who lose their jobs after a merger or buyout do not have a soft landing. Golden parachutes, according to its supporters, allow CEOs to concentrate on what is best for shareholders rather than worrying about whether they will be replaced if a deal is reached.
Although the co-founder of Tesla Inc. said he lacked faith in management, Agrawal, 38, who has been with Twitter for over ten years, insisted that the business saw through Musk’s acquisition at $54.20 per share. The two engaged in a heated text conversation early on in the process when Musk questioned his followers if Twitter was “dying,” according to text conversations that were made public during the litigation over the transaction.
Requests for a response from a spokesperson were not immediately fulfilled. Even though the co-founder of Tesla Inc. indicated he didn’t have faith in management, he insisted that the company see through Musk’s acquisition at $54.20 per share throughout almost a decade at Twitter. The two engaged in a heated text conversation early on in the process when Musk questioned his followers if Twitter was “dying,” according to text conversations that were made public during the litigation over the transaction.
Edited by Prakriti Arora
