Twitter Inc (NYSE:TWTR) CEO Parag Agrawal could stand to get a severance check worth over $40 million if he is terminated within 12 months of Tesla Inc (NASDAQ:TSLA) CEO Elon Musk taking over the social media platform.
What Happened: Equilar, a source for corporate leadership data, estimated that vesting of all of Agrawal’s equity awards (at Musk’s offering price of $54.20 per share) and a year’s worth of base salary would bring the severance figure to $42 million, reported Reuters.
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Why It Matters: Musk indicated that he did not have “confidence in [Twitter] management” in a filing with the U.S. Securities and Exchange Commission on April 14.
“Since making my investment, I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company,” said Musk in the filing.
On Monday, Musk secured the Twitter takeover with a price tag of $44 billion.
Price Action: On Friday, Tesla shares dropped 0.4% to $1,005.05 in the regular session, while Twitter shares ended 3.9% higher at $48.93, according to data from Benzinga Pro.
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Photo courtesy: Twitter
