It’s official: Elon Musk buys Twitter for $44 billion dollars!
Elon Musk Buys Twitter And Begins To Clean House Starting At The Top
The former CEO, Parag Agrawal, gets $65 million in payments. The former CFO, Ned Segal, is going to walk away with $66 million. And the former Head of Legal Policy, Vijaya Gadde, is getting the largest payout at $74 million. Why are these three leaving with tens of millions of dollars? Well, according to the acquisition agreement Elon Musk had to buy all of the Twitter stock. And the three executives owned over a million share of the company each (about 1.2 million each).
In addition to Elon Musk buying the executives’ stocks, he has to pay them a year’s salary and provide health benefits. I wonder if Musk pays for the health benefits beyond the year term. That’s according to acquisition agreement too. I can’t find out that information but I’m assuming it’s only for a year. I couldn’t see Elon Musk paying for that longer than a year when the former executives can afford to purchase their own top-of-the-line health insurance. Now I see why the Twitter employees wants to protect their salary and health benefits in their open letter. The executives’ Golden Parachute is large!
Elon Musk Buys Twitter And Will Probably Fire More Executives
Since Elon Musk buys Twitter get ready to see more executives depart, either on their own accord or not.
Executives are usually the first to go when company mergers or buyouts happen. The reason being because the new owner owners want to bring in their own people to run things. In addition, the old executives may not be in line with the new owner’s plans. In turn, the executives could cause additional problems for the new owner, including turning the employees against him or her. Thus, the top brass is usually the first to go.
Don’t feel sorry for them, however, because the former Twitter executives got great compensation. They don’t have to work again if they don’t want to. Or they have enough capital now to start their own company. The latter is usually what most former executives and/or employees do in many Silicon Valley companies. However, I could see these individuals becoming an executive in another company in due time.