That’s how much Twitter bosses collect when Elon Musk fires them

Elon Musk finally bought Twitter after months of back and forth. His tenure began with a bang. Because Musk has fired almost the entire management team – including the previous CEO Parag Agrawal. But that could cost him dearly in terms of severance pay.

The saga Twitter vs. Elon Musk is over. Because the Tesla CEO has finally taken over the short message service after turbulent months. But Musk’s first official act caused a sensation. Because the richest man in the world has summarily dismissed almost the entire management team of the company – including the previous CEO Parag Agrawal.

But that could cost Elon Musk dearly. Because the firings of Parag Agrawal, CFO Ned Segal and chief lawyer Vijaya Gadde alone could cost him more than 100 million US dollars. For the three executives, meanwhile, being kicked out could prove lucrative – especially since they will also receive shares for their shares after the deal.

Compensation: This is how much the Twitter bosses collect when they are kicked out

According to a so-called “change-in-control” provision in the employment contracts of the three top managers, they are entitled to severance pay if they are made redundant. That works too documents by the US Securities and Exchange Commission (SEC).

According to this, the previous CEO Parag Agrawal would receive the highest compensation with around 38.7 million US dollars. CFO Ned Segal is entitled to $25.4 million, according to SEC filings. And Vijaya Gadde, Twitter’s chief legal officer, could get $12.5 million.

Does Elon Musk want to avoid the severance payments?

Like the news agency Reuters with reference to the research company Equilar, the severance payments could be significantly higher. Due to a so-called “golden parachute”, the three executives would even be entitled to compensation totaling 122 million US dollars.

According to this, Parag Agrawal would get $57.4 million, while Ned Segal would get $44.5 million. For Vijaya Gadde, the bottom line is again 20 million US dollars. In addition, Elon Musk has to pay the three a total of 65 million US dollars for their shares.

Twitter: Are more layoffs imminent?

Severance pay and layoffs in senior management are quite common when it comes to takeovers of large companies. But they are also controversial. Shortly before Musk took over, there were also reports that the Tesla CEO wanted to lay off almost 75 percent of the entire workforce.

Musk has since denied this, but there are likely to be some personnel changes on Twitter. According to reports, the last word has not yet been spoken on the severance payments for the top managers.

Because how the information reported, Musk added the term “for cause” to the terminations. This in turn could indicate an attempt to circumvent the severance payments.

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