Elon Musk To Cough Up $204 Million As Severance To Fired Twitter Execs

Twitter Inc.’s (NYSE: TWTR) top executives are walking away from the company with a big payday. 

Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal, and Vijaya Gadde, Twitter’s general counsel and head of legal policy were reportedly fired Thursday evening as Elon Musk officially took control of the social media giant, marking the end of the long and tumultuous period since Musk offered $44 billion for the company. 

The move provides the three executives a “golden parachute” clause equivalent to US$204 million in compensation and stock awards according to a US Securities and Exchange Commission filing. Agrawal, Segal, and Gadde will receive a year’s salary and health benefits. The 2021 base pay for Agrawal was $623,000 while Segal and Gadde’s was $600,000 each.

As with all the company’s stockholders, they will also be compensated for their stake in the company. The three will receive a payout of about $65 million, equivalent to 1.2 million shares total, with $34.8 million belonging to Gadde. 

But the largest chunk of the package will be coming from accelerated vesting of promised future stock compensation. The clause in the deal approved by the company’s shareholders provides that, if terminated, the three would automatically vest stock worth $119.6 million as severance, with $56 million of it for Agrawal.

Agrawal will walk away with a bag of cash worth $65 million, Segal with $66 million, and Gadde with the heaviest bag at almost $74 million.

Twitter last traded at $53.70 on the NYSE, close to the $54.20 share price Musk is paying.


Information for this briefing was found via the SEC, MarketWatch, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Is Trump Returning to Twitter and Facebook?

Wanting to return to power with a fresh bid for the presidency in 2024, Donald...

Thursday, January 19, 2023, 11:11:43 AM

Tesla’s Elon Musk Picks Fight With Ross Gerber; Blames Fall On The Fed

Tesla’s (Nasdaq: TSLA) fall from grace is resulting in the loss of confidence amongst even...

Thursday, December 22, 2022, 03:28:00 PM

Elon Musk Faces Scrutiny Over Alleged Drug Use, Posing Risk On Company Leadership

Concerns have been mounting among executives and board members about the behavior of Tesla (NASDAQ:...

Monday, January 8, 2024, 12:07:39 PM

Not An April Fools Joke: Twitter to Remove ‘Legacy’ Checkmarks By April 1

Twitter will be phasing out legacy verified accounts come April, allowing users to keep their...

Saturday, March 25, 2023, 11:24:00 AM

Has Twitter’s Safeguards Against Child Abuse Material Weakened Since Elon Musk Takeover?

Twitter found itself in the eye of a storm following the controversial reinstatement of an...

Friday, July 28, 2023, 04:10:00 PM