Elon Musk Must Pay Nearly Ksh.24B To Three Fired Twitter Executives

Elon Musk sacked three of the top Twitter executives on Thursday, and they will leave with around $187 million of Musk’s money.

According to a source familiar with the issue, the company’s former chief executive officer Parag Agrawal, chief financial officer Ned Segal, and chief legal officer Vijaya Gadde were fired when Musk assumed control of it late on Thursday.

They and other shareholders will receive dividends from Musk after he bought their shares for $54.20 each. Even if they had stayed on board under the new ownership, they would have gotten a significant portion of that money.

The smallest stock position of the three belonged to Agrawal, who only took on the role of CEO a little less than a year ago. He owned 155,000 shares, which were valued $8.4 million when Musk bought them. For his 406,000 shares, Segal will receive $22 million, while Gadde will receive $34.8 million for her 642,000 shares.

But according to the merger deal endorsed by shareholders, they also get “Golden Parachute Compensation.” Included in that is Agrawal’s annual base salary of $1 million and Segal’s and Gadde’s base salaries of $600,000 apiece. They will also receive a year of health insurance, which will cost them all together roughly $73,000.

On July 12, 2021, Elon Musk, the chairman and CEO of Tesla Inc., leaves the courtroom to attend the SolarCity trial in Wilmington, Delaware, in the United States. Musk asserted in a Delaware courtroom that Tesla Inc.’s over $2 billion purchase of SolarCity in 2016 wasn’t a bailout of the struggling solar provider while seeming calm but confrontational. Al Drago/Bloomberg via Getty Images is the photographer.

A chronology of Elon Musk’s rocky ascent to Twitter ownership

The accelerated vesting of stock they would have otherwise been eligible for but were not yet eligible for is by far the most valuable component. Agrawal will ultimately receive $56.4 million from that, Segal $43.8 million, and Gadde $19.4 million. While Gadde receives accelerated vesting for only half of her shares, Agrawal and Segal receive accelerated vesting for all of their shares.

The total amount of the parachute payments is $121.8 million. You gain $187 million when you add the $65.2 million for the acquisition of the shares they currently hold.

Be the first to comment

Leave a Reply

Your email address will not be published.


*