Twitter CEO Parag Agrawal and policy chief Vijaya Gadde are set to get around Rs 1000 crore after getting fired
After months of controversy, Elon Musk purchased Twitter. And as was to be expected, he sacked Twitter’s CFO Ned Segal, as well as the Twitter CEO Parag Agrawal and its policy leader Vijaya Gadde, as soon as he acquired the business. However, everyone saw it coming, even Twitter presumably. Additionally, the business had set favourable severance conditions for its senior executives in order to protect them from getting the raw end of the deal. There is currently a lot of speculation about how much money Agrawal or Gadde will receive from Twitter. There are several statistics available. So, we looked up Twitter’s SEC filings and discovered the actual figures.
It appears that Twitter CEO Parag Agrawal would receive about $67 million (or approximately Rs 552 crore) from Twitter overall after being let go. Gadde, though, will be qualified for $54.7 million (roughly Rs 450 crore). This totals about $120 million (around Rs 1000 crore). This is in accordance with Twitter’s SEC report from July of this year.
Nevertheless, there is always a risk that Elon Musk will object to paying this sum, claiming a provision or requirement in his job contract. But if that occurs, there will probably be a legal dispute once more, similar to what happened in the past few months when Musk broke his promise to purchase Twitter and the company’s management subsequently took him to court. Just to be clear: As the trial approached, Musk once more had a change of heart and informed the court that he would purchase Twitter.
Returning to the subject of Agrawal and Gadde’s severance package: The top three sacked executives, Agrawal, Gadde, and former CFO Ned Segal, would earn special remuneration under the “Golden Parachute Compensation,” according to Twitter’s settlement conditions with Musk, which are listed on the SEC website. The report claims:
Under the severance policy and the Agrawal offer letter, each of the NEOs (Twitter executive officers) would be entitled to receive a cash sum equal to 100% of the NEO’s annual base salary, which is in each case payable in a lump sum on the 61st day following the involuntary termination, upon an involuntary termination during the applicable COC (Twitter’s Change of Control period).
In addition to the severance, Agrawal, Gadde, and the other leaders who were sacked will have their direct shares purchased back for $54.20 (approximately Rs 4,500 per share). Agrawal holds 128,753 direct shares worth $6,978,413 according to the SEC filing, while Gadde owns 623,156 direct shares worth $33,775,055.
Former Twitter executives’ unvested shares of stock (RSUs and PSUs), which are again worth millions, will also become fully vested. According to a rough calculation, Musk must pay Agrawal and Gadde more than $100 million because he fired them after acquiring Twitter.
Agrawal is entitled to get about $67 million if we add the value of all equities to the severance (a lump payment of the base salary) (roughly Rs 552 crore). This sum includes unvested shares of $59 million, basic pay of $1 million, and direct stock worth about $6,9 million. It’s interesting to note that Twitter creates an exception in the situation of Agrawal and declares that upon his termination, he will be entitled to vest all of his unvested shares. That equates to 100%. Additionally, the percentage is 100% for Segal.
Gadde, as opposed to Agrawal, will receive 50% of the value of the unvested shares (RSUs and PSUs). She is anticipated to win $54.7 million (roughly Rs 450 crore). This sum includes unvested shares of $20 million, basic pay of $0.6 million, and direct shares worth approximately $33.7 million.
She might be collecting up to $75, which is far more than what Agrawal is reportedly paid, according to the Bloomberg calculator, which also notes that her unvested shares are worth much more. On the basis of the SEC document that Twitter last submitted, we were unable to corroborate this.
The official head of Twitter is now vacant, however Musk might step in as a stopgap. He tweeted earlier today that a new content moderation committee will be established by the business. The present moderation policy will remain in place while it is being created. Banned individuals like former US President Donald Trump won’t be coming back anytime soon. He added that Twitter anticipates reversing all bans and suspensions that were implemented “for minor and questionable grounds.”