Elon Musk on the hook to pay more than $200 million to 3 fired Twitter execs

Elon Musk on the hook to pay more than $200 million to 3 fired Twitter execs

This story was updated with a extra present-day tally of shares from Twitter’s most current proxy assertion. 

When Twitter Inc.’s leading executives walked out of its San Francisco headquarters Thursday, they may possibly as perfectly have been carrying luggage of Elon Musk’s hard cash.

Main Govt Parag Agrawal, Main Fiscal Officer Ned Segal and Vijaya Gadde, Twitter’s head of authorized coverage, gained a “golden parachute” clause in Twitter’s
TWTR,
+.66%
merger with Musk’s X Holdings. Musk reportedly fired all a few Thursday evening on formally having regulate of the social community in a $44 billion acquisition, and will be obligated to give extra than $204 million of it to those people three, in accordance to Twitter’s filing with the Securities and Trade Commission.

Go through far more: Elon Musk completes Twitter purchase, fires CEO and other best execs: studies

Agrawal, Segal and Gadde personal roughly 1.2 million shares of Twitter, extra than fifty percent of that a $34.8 million stake owned by Gadde. The trio’s around $65 million stake would be ordered by Musk like any other shareholder’s inventory.

Furthermore, a clause in the merger arrangement furnished accelerated vesting of promised future stock compensation — and that’s exactly where the most important chunk of revenue comes in. The “Golden Parachute Compensation” clause in Twitter’s SEC submitting — which was the offer permitted by Twitter shareholders — displays the trio would instantly vest stock worth $119.6 million as severance if terminated, with the greatest payout there likely to Agrawal at $56 million.

They’re also entitled to a year’s income and well being rewards. In 2021, Agrawal experienced a base fork out of $623,000, even though Segal and Gadde’s base pay was $600,000 every single.

In total, Gadde is set to stroll absent from Twitter with the most significant haul: Just about $74 million. Agrawal and Segal aren’t considerably behind her, although, at about $65 million and $66 million, respectively.

Twitter shares have rallied 26% in excess of the previous thirty day period and shut Thursday at $53.70, close to the $54.20 share selling price Musk, who’s also CEO of Tesla Inc.
TSLA,
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and the world’s wealthiest person, agreed to fork out in April.

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