Twitter Bosses Entitled To USD 122 Million In 'Golden Parachute' Pay-Outs
New Delhi: Twitter's top executives, including Parag Agrawal and Vijaya Gadde will be entitled to "golden parachute" pay-outs worth more than USD 122 million after being fired by the company's new owner, Elon Musk fired.
A golden parachute is essentially a contract which entitles top executives of a company to substantial benefits in case they lose their jobs following a merger, takeover or acquisition. This measure is also known as a 'poison pill' since it can act as a safeguard against hostile takeovers.
In August, US-based corporate research firm Equilar had estimated that ex-CEO Paras Agrawal alone could receive a USD 42 million payout if he is terminated after the takeover.
The debt-funded deal has become a costly exercise even for Musk, the world's richest man.
Legal costs in particular are likely to have run into the tens of millions of dollars after Musk tried to terminate the deal with Twitter in July, arguing that the company had misled him over the number of bot accounts on the social network.
Agrawal is likely to receive the largest payout, worth USD 57.4 million, while Segal and Gedde are entitled to USD 44.5 million and USD 20 million respectively, according to company filings.
The three executives also hold a cumulative 1.2 million shares, which are likely to be bought by Musk as is standard in any takeover. Those payments would be worth USD 8.4 million to Agrawal, USD 22 m to Segal and USD 34.8 million to Gadde.
After closing the USD 44 billion acquisition deal, Elon Musk has started to reform the policies of the micro-blogging platform and is wasting no time remodelling it by cutting off employees, and introducing plans for a council to determine content decisions, The Hill reported.
In one of the first few changes, he purged the top executives of the company as soon as he closed the expected deal in which Twitter CEO Parag Agrawal and finance chief Ned Segal left the company's San Francisco headquarters.
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