After firing high execs, Elon Musk might block $100 million payout to Twitter staff: Report

Elon Musk might cease payouts to fired executives as offered below Twitter’s compensation scheme. Reports said that Twitter’s approximate 7,500 staff could also be due $100 million below the corporate’s contract.

New Delhi ,UPDATED: Oct 29, 2022 09:52 IST

Elon Musk formally owns Twitter after making an attempt to get out of USD 44 million deal. (Image: Reuters)

By India Today Web Desk: Elon Musk’s buyout of Twitter has been famous for extra causes than one. Assuming high management of the micro-blogging platform on late Thursday night, Musk was fast to place his priorities in place. It could also be famous that Musk’s Twitter acquisition was below scrutiny for months now as he wished to get out of his $44 million deal to seal the deal.

Also, his choices, proper after he took over Twitter, converse volumes about his possession. Musk’s first transfer, reportedly, was to fireplace high executives of the entity.

In truth, the Tesla proprietor wrote to Twitter advertisers and stated that he had purchased Twitter in a bid to ‘assist humanity’ amid the ‘nice hazard that social media will splinter into far proper wing and much left wing echo chambers that generate extra hate and divide our society’. Thereafter, his first few choices because the Twitter proprietor had been to fireplace Parag Agrawal, the chief government officer, Ned Segal, the chief monetary officer and Vijaya Gadde, the chief authorized officer.

ALSO READ | Elon Musk takes management of Twitter, fires CEO Parag Agarwal

Now, authorized consultants are involved about Musk’s monetary liabilities that lay forward, particularly worker compensation and sustaining a thick money circulate for the enterprise. The New York Times said that Twitter’s approximate 7,500 staff could also be due $100 million below the corporate’s compensation programme.

As per stories, Musk might be required to pay greater than $200 million to the aforesaid three fired executives. Agrawal is slated to obtain the biggest payout. This was finalised when he took over because the CEO of Twitter in November 2021 as a result of he signed the cope with a ‘golden parachute’ clause. In the contract with Twitter, he was assured severance compensation of about $42 million. This might have been realised if Twitter let go of Agrawal inside a yr of his assuming the workplace.

Almost a yr later, Musk might have fired Parag Agrawal to revamp the social media platform that he owns.

However, a default in advancing compensation to staff and the paradox of whether or not the fired staff will obtain the cash might set off prolonged litigation. Reports counsel that Musk might want to make the funds if he determined to fireplace extra staff earlier than Tuesday because the compensation scheme will vest on on that day.

Shortly after taking up Twitter, Musk tweeted a cryptic replace studying —’fowl is freed’ — seemingly flagging his intention to make the platform open to free speech. As per Forbes Billionaires Rich List, Musk’s wealth is estimated to be price $ 221.3 billion.

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Oct 29, 2022