New Twitter owner Elon Musk originally agreed to pay $100 million due to an employee compensation package set to vest on Tuesday.
Elon Musk said « the bird is freed » regarding his Twitter acquisition, but legal minds remain skeptical regarding how one of the world’s richest people will financially move forward in terms of employee compensation and simultaneously generating strong revenue cash flow.
Upon Twitter’s new era of ownership that began Thursday, Musk fired Twitter Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal, and Vijaya Gadde, the company’s legal affairs and policy chief. MarketWatch reported that Musk has to pay the executive trio over $204 million, according to Twitter’s filing with the Securities and Exchange Commission.
A « Golden Parachute Compensation » clause approved by Twitter shareholders would also automatically vest stock worth $119.6 million as severance if terminated. Agrawal would receive the biggest payout at $56 million.
Shinall said that courts typically uphold contracts by their original terms and that it’s not uncommon for new owners to « clean house with top executives.
