Former Twitter Bosses Eligible For ‘Golden Parachute’ Payouts, Filings Present

Twitter’s high executives, together with Parag Agrawal and Vijaya Gadde will probably be entitled to “golden parachute” payouts price greater than $122 million (roughly Rs. 1,000 crore) after being fired by the corporate’s new proprietor, Elon Musk. A golden parachute is basically a contract which entitles high executives of an organization to substantial advantages in case they lose their jobs following a merger, takeover or acquisition. This measure is also called a ‘poison tablet’ since it could actually act as a safeguard towards hostile takeovers. In August, US-based company analysis agency Equilar had estimated that ex-CEO Parag Agrawal alone might obtain a $42 million (roughly Rs. 350 crore) payout if he’s terminated after the takeover.

The debt-funded deal has change into a pricey train even for Musk, the world’s richest man. Authorized prices specifically are more likely to have run into tens of tens of millions of {dollars} after Musk tried to terminate the cope with Twitter in July, arguing that the corporate had misled him over the variety of bot accounts on the social community.

Agrawal is more likely to obtain the most important payout, price $57.4 million (roughly Rs. 470 crore), whereas Segal and Gedde are entitled to $44.5 million (roughly Rs. 370 crore) and $20 million (roughly Rs. 170 crore) respectively, in keeping with firm filings.

The three executives additionally maintain a cumulative 1.2 million shares, that are more likely to be purchased by Musk as is normal in any takeover. These funds can be price $8.4 million (roughly Rs. 70 crore) to Agrawal, $22 million (roughly Rs. 180 crore) to Segal and $34.8 million (roughly Rs. 290 crore) to Gadde.

After closing the $44 billion (roughly Rs. 3,63,700 crore) acquisition deal, Elon Musk has began to reform the insurance policies of the microblogging platform and is losing no time remodelling it by slicing off staff, and introducing plans for a council to find out content material choices.

In one of many first few modifications, he purged the highest executives of the corporate as quickly as he closed the anticipated deal wherein Twitter CEO Parag Agrawal and finance chief Ned Segal left the corporate’s San Francisco headquarters.