Twitter CEO Parag Agrawal will obtain a whopping $40 million pay-out if terminated
Elon Musk has bought Twitter for $54.20 a share which makes Mr. Agrawal’s payout to be $38.7 million.
Elon Musk has set the web on fireplace by shopping for Twitter. He has acquired the social networking platform for $43-44 billion in money. He has spent $21 billion of his personal cash whereas the remaining has been sourced from debt and margin mortgage financing. Upon changing into the proprietor of the newly privatized Twitter, Mr Musk declared he would be the bastion of free speech and can work in direction of new options, open-sourcing the algorithms, and eliminating annoying spambots from the service. Whereas all these sound encouraging, Twitter CEO Parag Agrawal doesn’t share the identical sentiment. And if issues don’t work out favourably for Mr. Agrawal, he would nonetheless stand to earn an enormous $39-42 million payout.
Parag’s large payout from Musk’s Twitter
Even earlier than the Musk-Twitter deal may shut, trade specialists had began calculating the doable payout of the highest Twitter executives. Some estimates present $978M for Twitter founder and ex-CEO Jack Dorsey and $39M for the present CEO Parag Agrawal. Right here’s the how and why:
These present and former prime execs like Dorsey and Agrawal do personal shares of the corporate. So, with the $54.20 per share value supplied by Elon Musk, these people will get jaw-dropping packages after they ultimately promote these shares.
Some studies are even claiming a $38.7 million bundle for Parag Agrawal, a $25.5 million bundle for CFO Ned Segal, and a whopping $978 million for Jack Dorsey.
A bit completely different from that is the projected estimates by analysis agency Equilar which claims a $42 million bundle for Parag if he’s terminated inside 12 months of a ‘change in management’ at Twitter.
‘Change in Management’ are particular clauses within the contracts of those top-level Twitter execs. As per a current proxy Twitter submitting, Agrawal’s clause states he studies to the “board of administrators of a publicly-traded entity,” and a deal to take Twitter personal will set off this clause. So, if Musk terminates Parag, he might be getting the aforementioned big-dollar bundle.
In a joint assertion saying the deal, Mr Agrawal mentioned, “Twitter has a objective and relevance that impacts the whole world. Deeply happy with our groups and impressed by the work that has by no means been extra necessary.”
Later in an organization all-hands assembly, he’s quoted as saying “As soon as the deal closes, we do not know which route the platform will go. We don’t have all of the solutions. It is a interval of uncertainty.”
He has apparently additionally assured Twitter workers that no layoffs are deliberate in the intervening time. Additionally word that at current, there may be nothing that strongly suggests whether or not he or any of the highest individuals at Twitter will depart the corporate. So, the aforementioned estimates are simply that…estimates.
Additionally Learn: Elon Musk finally takes ownership of Twitter for a staggering $44 billion