Elon Musk has purchased Twitter after months of drama. And as anticipated, instantly after getting the corporate he fired its CEO Parag Agrawal and its coverage chief Vijaya Gadde, together with Twitter CFO Ned Segal. However it’s an eventuality that everybody noticed coming, in all probability additionally Twitter. And the corporate, to make sure that its senior executives don’t get the unsuitable finish of the deal, had ready beneficiant severance phrases for them. Now, there may be a whole lot of buzz round how a lot cash Agrawal would get from Twitter or how a lot Gadde will obtain. There are a whole lot of figures on the market. So, we checked Twitter’s SEC filings and located the official numbers.
And the numbers are easy: In whole, it appears that evidently Agrawal would get round $67 million (roughly Rs 552 crore) from Twitter now that he has been fired. Whereas Gadde can be eligible to $54.7 million (roughly Rs 450 crore). Mixed, that is round $120 million (round Rs 1000 crore). That is in line with the SEC submitting made by Twitter in July this 12 months.
Now, there may be all the time an opportunity that Elon Musk could refuse to pay this cash, citing some clause or rule in employment contract. But when that occurs, chances are high that there’ll once more be courtroom case, considerably like what occurred in the previous few months when Musk went again on his settlement to purchase Twitter and the corporate administration then dragged him to courtroom. Simply to make it clear: Because the trial neared, Musk modified the thoughts once more and informed the courtroom that he would purchase Twitter.
Coming again to the purpose of the severance bundle of Agrawal and Gadde: Twitter’s deal phrases with Musk on the SEC web site word that the highest three fired execs – Agrawal, Gadde, and former CFO Ned Segal will obtain particular compensation below the “Golden Parachute Compensation”. The doc states:
“Below the severance coverage and the Agrawal supply letter, upon an involuntary termination through the relevant COC (Twitter’s Change of Management interval), every of the NEOs (Twitter government officers) could be entitled to obtain a money quantity equal to 100 per cent of the NEO’s annual base wage, which is in every case payable in a lump sum on the 61st day following the involuntary termination.
Past the severance, direct shares held by Agrawal, Gadde, and different fired leaders can be purchased again for $54.20 (roughly Rs 4,500) per share. The SEC submitting reveals that Agrawal owns 128,753 direct shares price $6,978,413, and Gadde’s 623,156 direct shares are price $ 33,775,055.
Moreover, shares held unvested shares (RSUs and PSUs) by former Twitter execs are additionally going to be vested, that are once more price hundreds of thousands. A tough estimate reveals that Musk has to pay over $100 million to Agrawal and Gadde as a result of he fired them after getting Twitter.
How a lot cash Agrawal and Gadde are going to get?
If we calculate the severance (a lump sum of the bottom wage), plus the worth of all shares, Agrawal is entitled to obtain roughly $67 million (roughly Rs 552 crore). This determine consists of direct inventory price roughly $6.9 million plus base pay of $1 million plus unvested shares price $59 million. Curiously, in case of Agrawal, Twitter makes an exception and says that upon his firing he can be entitled to vest all his unvested shares. Which means 100 per cent. For Segal too, the quantity is 100 per cent.
In contrast to Agrawal, Gadde will get a 50 per cent worth of the unvested shares (RSUs and PSUs). She is more likely to obtain an estimated $54.7 million (roughly Rs 450 crore). This determine consists of direct shares price roughly $33.7 million plus base pay of $0.6 million plus unvested shares price $20 million.
Though, the Bloomberg calculator factors out her unvested shares are price far more, and she or he could possibly be receiving near $75, which is far more than what Agrawal is alleged to get. We’ve not been in a position to verify this on the premise of the SEC doc that was filed final by Twitter.
What’s subsequent for Twitter?
As of now, Twitter formally doesn’t have a chief, although Musk could take up as an interim measure. Earlier immediately, he tweeted that the corporate will arrange a brand new content material moderation council. Till its formation, the present moderation coverage will live on. It means banned members like former US President Donald Trump will not return quickly. On the identical time he additionally stated that Twitter expects to reverse all bans and suspensions that had been made “for minor and doubtful causes.”