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When Twitter Inc.’s high executives walked out of its San Francisco headquarters Thursday, they might as effectively have been carrying baggage of Elon Musk’s money.
Chief Govt Parag Agrawal, Chief Monetary Officer Ned Segal and Vijaya Gadde, Twitter’s head of authorized coverage, acquired a “golden parachute” clause in Twitter’s
TWTR,
merger with Musk’s X Holdings. Musk reportedly fired all three Thursday night upon formally taking management of the social community in a $44 billion acquisition, and shall be obligated to offer greater than $200 million of it to these three, in keeping with Twitter’s submitting with the Securities and Change Fee.
Learn extra: Elon Musk completes Twitter buy, fires CEO and different high execs: experiences
Agrawal, Segal and Gadde personal roughly 1.15 million shares of Twitter, greater than half of {that a} $33.8 million stake owned by Gadde. The trio’s roughly $62 million stake can be bought by Musk like every other shareholder’s inventory.
Moreover, a clause within the merger settlement offered accelerated vesting of promised future inventory compensation — and that’s the place the largest chunk of cash is available in. The “Golden Parachute Compensation” clause in Twitter’s SEC submitting exhibits the trio can be given inventory price $127.5 million as severance if terminated, with the biggest payout there going to Agrawal at $59 million.
They’re additionally entitled to a yr’s wage and well being advantages. In 2021, Agrawal had a base pay of $623,000, whereas Segal and Gadde’s base pay was $600,000 every.
In complete, Gadde is about to stroll away from Twitter with the largest haul: Almost $75 million. Agrawal and Segal aren’t far behind her, although, at roughly $66 million and $67 million, respectively.
Twitter shares have rallied 26% over the previous month and closed Thursday at $53.70, near the $54.20 share value Musk, who’s additionally CEO of Tesla Inc.
TSLA,
and the world’s wealthiest particular person, agreed to pay in April.
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