Three top workers of Twitter Inc. who were reportedly terminated after Elon Musk completed his takeover stand to receive more than $100 million in severance pay and dividends from previously granted equity incentives.
According to calculations by Bloomberg News, Chief Executive Officer Parag Agrawal, who has been in his role for less than a year, is eligible to receive approximately $50 million. The estimated salary for Ned Segal, the chief financial officer, and Vijaya Gadde, the head of legal, policy, and trust, is approximately $37 million and $17 million, respectively.
According to sources with knowledge of the matter, the three and other significant Twitter executives were among those who left when Musk seized control of the social media behemoth on Thursday. Their exits mark the end of more than six months of public and legal conflict, which ended in Musk, the wealthiest man in the world, becoming CEO.
According to the conditions of the company’s severance policy, Agrawal and his subordinates were entitled to severance pay equal to a year’s salary plus cash-outs of unvested stock awards if Twitter was bought and they lost their positions as a result. In addition, Twitter is forced to pay approximately $31,000 annually for each employee’s health insurance premiums.
Critics frequently point out the unfairness of providing executives golden exit payments while giving normal employees who lose their jobs as a result of a merger or buyout little to no soft landing. According to proponents, golden parachutes allow CEOs to focus on what is best for shareholders, rather than on whether they will be replaced if a deal is done.
Although the co-founder of Tesla Inc. stated that he lacked confidence in management, Agrawal, 38, who has been with Twitter for over ten years, argued that the company saw through Musk’s $54.20 per share acquisition. Earlier in the process, when Musk asked his followers if Twitter was “dying,” according to text messages made public during the transaction’s litigation, the two engaged in a furious text debate.
A Twitter representative did not immediately respond to our requests for comment. Even though the co-founder of Tesla Inc. said he lacked confidence in management, he pushed that the firm complete Musk’s acquisition at $54.20 per share during his almost decade-long tenure at Twitter. Earlier in the process, when Musk asked his followers if Twitter was “dying,” according to text messages made public during the transaction’s litigation, the two engaged in a furious text debate.
Requests for a Twitter spokesperson’s reaction were not immediately satisfied.