Elon Musk fired Twitter execs including CEO Parag Agrawal ‘for trigger’ in a bid to avoid paying out tens of millions in severance, report says

Share to friends
Twitter CEO Parag Agrawal at left and Tesla and SpaceX CEO Elon Musk at right
Parag Agrawal and different high Twitter executives have been fired by Elon Musk.

  • Elon Musk fired high Twitter execs “for cause” to avoid severance funds, The Information reported.
  • He fired CEO Parag Agrawal and three different executives on Thursday as he accomplished his takeover.
  • The execs are in line to obtain up to $122 million in payouts, researchers Equilar instructed Reuters.

Elon Musk fired high Twitter executives “for cause” in an try to avoid hefty severance payouts in the wake of his takeover of Twitter, The Information reported on Saturday.

Musk removed Twitter CEO Parag Agrawal, chief monetary officer Ned Segal, authorized chief Vijaya Gadde, and basic counsel Sean Edgett on Thursday after closing his $44 billion deal.

READ ALSO  Meet the members of Congress who've traded stock in Elon Musk's companies during 2022

An individual aware of the matter told The Information that Musk dismissed the executives “for cause” to attempt to avoid severance payouts and unvested inventory awards, suggesting he had justification for his or her termination. Two folks with data of the topic told The New York Times the executives have been now contemplating their choices.

The former executives have been in line for payouts totalling almost $90 million, with Agrawal set for $38.7 million, largely due to shares vested since his departure. Research agency Equilar instructed Reuters the payouts could go as high as $122 million.

Equilar’s analysis director, Courtney Yu, told Reuters on Friday that the executives “should be getting these payments unless Elon Musk had cause for termination, with cause in these cases usually being that they broke the law or violated company policy.”

Musk repeatedly lambasted Twitter’s operations and their executives in the months earlier than closing his deal over the number of fake accounts. His relationship with Agrawal in explicit rapidly soured, with the pair trading blows on Twitter and over text messages.

READ ALSO  Live Election Results: Wyoming State Legislature

The Tesla CEO has wasted no time in reforming Twitter. Insider reported on Saturday that team leaders and VPs had begun drawing up lists of who to carry on based mostly on efficiency critiques.

The new proprietor of Twitter, who’s naming himself as CEO on internal company files, per Insider, additionally had to deny reports that he was planning to lay off 75% of the workforce. 

Musk is anticipated to make extra layoffs rapidly as a result of of a November 1 deadline when staff are scheduled to obtain inventory grants as half of their compensation in thoughts, per The New York Times. These are a important proportion of most Twitter staff’ compensation, the newspaper reported.

Read the unique article on Business Insider

Go to Source