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Home » Elon Musk BEATS THE BUZZER Firing Top Executives Days Before Employees Were Set to ‘Receive Stock Grants as Part of Their Compensation’

Elon Musk BEATS THE BUZZER Firing Top Executives Days Before Employees Were Set to ‘Receive Stock Grants as Part of Their Compensation’

Elon Musk has never been one to hold his tongue with regards to hot button societal situations and as the CEO of Tesla and being a highly revered and known public figure his opinions often gain attention and traction with his followers and his foes.

A recent move that caused Musk to be the target of the media was his acquisition of the social media platform Twitter. Following his takeover he immediately fired top executives as he promised to cut weight in the company.

Many outlets have published pieces on Musk’s Twitter takeover, but an article from Mike Isaac of the New York Times garnered quite the attention as it detailed Musk’s critical timing when firing Twitter’s former Chief Executive Parag Agrawal among other top executives. 

“Mr. Musk also appears unlikely to pay the golden parachutes that the fired top executives of Twitter were set to receive. Under the merger agreement, those executives — including Parag Agrawal, the chief executive — had been set to receive compensation of $20 million to $60 million if they were fired. But Mr. Musk terminated the executives ‘for cause,’ meaning he did it because he alleged he had justification, which may void that agreement, two people with knowledge of the matter said.

“Elon Musk planned to begin laying off workers at Twitter as soon as Saturday, four people with knowledge of the matter said, with some managers being asked to draw up lists of employees to cut.

“Mr. Musk, who completed a $44 billion deal to buy Twitter on Thursday, has ordered the cuts across the company, with some teams to be trimmed more than others, said three of the people, who declined to be identified for fear of retaliation. The scale of the layoffs could not be determined. Twitter has around 7,500 employees.”

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The importance of firing these employees prior to November 1st was detailed in the Times article that said Nov. 1st was “when employees were scheduled to receive stock grants as part of their compensation. Such grants typically represent a significant portion of employees’ pay. By laying off workers before that date, Mr. Musk may avoid paying the grants, though he is supposed to pay the employees cash in place of their stock under the terms of the merger agreement.”

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