Billionaire Elon Musk will now be obliged to pay a total sum of $200 million to the top executives.
The owner and founder of Tesla and SpaceX, Elon Musk recently possessed Twitter at $44 billion after a long six months conflict. After acquiring Twitter, he terminated the top executives of the company including the former CEO, Parag Agrawal.
Sources said, he will further fire several employees as well and will create a content moderation council to look after banned accounts and content. The three executives were accused of spreading misinformation to Elon Musk and his co-investors about the number of false accounts on the platform.
The Chief Executive Officer, chief financial officer, and legal policy head were covered under “Golden Parachute” which made them liable for a $200 billion paycheck.
What is the Golden Parachute?
The term Golden Parachute is a contract for top executives of an entity to receive some benefits if they lose their position by merger or acquisition by some other company or individual.
In the Cambridge Dictionary, it is defined as a “large payment made to someone who has an important job with a company when that person is forced to leave their job.”
They even get insurance and pension benefits with the help of the Golden parachute clause. It also prevents unwanted takeovers as it costs a hefty amount to give to the executives if they want to fire them.
The Former CEO of Twitter, Parag Agrawal will get the highest payout of about $56 million, Segal about $22million and Gadde will get $34.8 million under the Golden Parachute clause.
As they were holding Twitter shares, therefore as per shareholding, Gadde will be taking away the biggest amount among the three, nearly $74 million. Though the other two are not far away, Agrawal with $65 million and Segal with $66 million.
Vijaya Gadde was the legal policy head of Twitter and her job was to handle issues like harmful speech, harassment, and misinformation.
Ned Segal, the former Chief Financial officer of Twitter from 2017 to 2022. His role was to manage the finance of Twitter. His work includes tracking cash flow, analyzing the strengths/weaknesses of a company, and overseeing its financial success.
Parag Agrawal is a software engineer and the former CEO of Twitter Inc. He was leading Twitter from November 2021 to October 2022. He was fired from the role after Elon’s acquisition in October.
