The three top Twitter executives that Elon Musk fired on Thursday will walk away with about $187 million of Musk’s money.
Former CEO Parag Agrawal, former CFO Ned Segal and former chief legal officer Vijaya Gadde were fired after Musk took control of the company on Thursday, according to a source familiar with the situation.
They would have received a large portion of that money even if they had remained under the new ownership – they and other shareholders will receive payments from Musk after he bought their shares for $54.20 each.
Agrawal, who took over as CEO just under a year ago, had the smallest equity stake of the three: 155,000 shares worth $8.4 million at the price Musk paid.
Segal will get $22 million for the 406,000 shares he owns, while Gadde will get $34.8 million for his 642,000 shares.
But they also receive “Golden Parachute Compensation” in the merger agreement approved by the shareholders.
This includes a year’s base salary – $1 million for Agrawal and $600,000 each for Segal and Gadde.
They will also receive a year of health insurance, worth about $73,000 between the three.
The most profitable part, by far, is the accelerated acquisition of shares that they would receive in the future but for which they have not yet qualified. That will end up being worth $56.4 million for Agrawal, $43.8 million for Segal, and $19.4 million for Gadde.
Agrawal and Segal get the expedited takeover of all of their shares, while Gadde gets the expedited takeover of only half of their shares.
Altogether, the parachute payments amount to US$ 121.8 million. Add the $65.2 million to buy the shares they already own and you get $187 million.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
