Before buying Twitter for $44 billion, Elon Musk is believed to have informed financiers that he will cut executive compensation and monetize tweets to make the company more lucrative.
Musk is alleged to have given the promise to banks before obtaining financing to purchase the company, which was unveiled on Monday.
According to a filing, Twitter now spends around $2.9 million on cash and stock incentives to board members.
The firm’s top executives, on the other hand, earn significantly more every year and may face salary cuts, as reported.
Despite the fact that CEO Parag Agrawal only took over in November, he is on track to earn $30 million in 2022, due to the $29 million in stock options he received as part of his advancement.
According to Reuters, Musk has already lined up Agrawal’s replacement but did not specify who it will be.
According to The Hollywood Reporter, who cited Twitter’s most current proxy filing, Agrawal’s contract includes a ‘Change in Control’ clause, which he took back from co-founder and previous CEO Jack Dorsey.
If he is sacked, he will earn a $38 million payment.
Vijaya Gadde, Twitter’s top legal officer, would almost certainly ruin her career if she stays.
Last year, she made $600,000 in salary and received $17 million in stock options. Musk has already chastised Gadde, dubbed the “moral authority of Twitter,” for blocking news of Hunter Biden’s laptop.
According to Twitter’s proxy, his total remuneration in 2021 was $30.4 million, mostly in stock awards.
After Musk purchased the social media platform he founded, Dorsey is set to get a $978 million settlement.
Musk holds 18,042,428 shares in the business, or 2.4 percent, which he will now purchase for $54.20 apiece, garnering him over a billion dollars.
When the acquisition closes, Bret Taylor, the chair of the company, will get a cash compensation of slightly over $3 million.
He might possibly risk dismissal.
According to Reuters, Elon made the case to financiers as he tried to secure funding for the buyout days after delivering his bid to Twitter on April 14.
Twitter’s board of directors accepted his ‘best and last’ bid after he submitted bank pledges on April 21.
Musk had to prove to the banks that Twitter’s cash flow was adequate to cover the loan he was seeking.
In the end, he obtained $13 billion in loans covered by Twitter, as well as a $12.5 billion extra credit secured by the Tesla stock.
He vowed to pay the remaining debt with his own funds.
Musk’s offer to the banks, according to the source, comprised of his vision rather than concrete promises, and the specific cost reductions he would seek once he owns Twitter remain unknown.
According to the sources, the proposal he detailed to banks was lacking in depth.