When Twitter Inc.’s best executives walked out of its San Francisco headquarters Thursday, they may perhaps as nicely have been carrying luggage of Elon Musk’s dollars.
Main Government Parag Agrawal, Chief Economic Officer Ned Segal and Vijaya Gadde, Twitter’s head of legal policy, acquired a “golden parachute” clause in Twitter’s
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merger with Musk’s X Holdings. Musk reportedly fired all three Thursday evening upon formally getting manage of the social network in a $44 billion acquisition, and will be obligated to give a lot more than $200 million of it to those people 3, in accordance to Twitter’s submitting with the Securities and Trade Fee.
Examine a lot more: Elon Musk completes Twitter obtain, fires CEO and other major execs: studies
Agrawal, Segal and Gadde personal about 1.15 million shares of Twitter, far more than 50 % of that a $33.8 million stake owned by Gadde. The trio’s approximately $62 million stake would be purchased by Musk like any other shareholder’s inventory.
Moreover, a clause in the merger arrangement furnished accelerated vesting of promised potential inventory payment — and which is where by the most significant chunk of funds arrives in. The “Golden Parachute Compensation” clause in Twitter’s SEC filing reveals the trio would be provided stock value $127.5 million as severance if terminated, with the premier payout there heading to Agrawal at $59 million.
They are also entitled to a year’s salary and wellbeing rewards. In 2021, Agrawal had a foundation pay back of $623,000, whilst Segal and Gadde’s base pay out was $600,000 each.
In total, Gadde is set to stroll absent from Twitter with the most important haul: Almost $75 million. Agrawal and Segal are not far driving her, even though, at about $66 million and $67 million, respectively.
Twitter shares have rallied 26% in excess of the previous month and shut Thursday at $53.70, near to the $54.20 share rate Musk, who’s also CEO of Tesla Inc.
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and the world’s wealthiest particular person, agreed to fork out in April.
