Elon musk closed a deal to acquire Twitter for $44 billion after he acquired one of the most popular social media platforms. Musk fired the CEO of Twitter, Parag Agrawal, and the action of this billionaire has left many people to wonder Why Did Elon Musk Sack Twitter CEO?
Elon Musk’s takeover of Twitter has since begun on April 14, 2022, and ended on October 27, 2022.
Elon Musk now officially owns Twitter. Musk renamed his Twitter bio to “Chief Twit” shortly after closing his $44 billion buyout of the social network, he announced that “the bird is freed,” ushering in the Musk era of social media.
Why Did Elon Musk Sack Twitter CEO
Since the acquisition of Twitter was being contemplated, rumors have circulated that Parag Agrawal would be fired as soon as Twitter is sold to Musk. The Tesla CEO has often expressed his displeasure with Twitter’s management, which includes Agrawal and Vijay Gadde. Musk addressed with former Twitter CEO Dorsey in several of his leaked conversations how he and Agrawal cannot work together.
How much money would Parag Agrawal receive as he is fired?
Agarwal had to quit his role as the CEO in less than a year, but he is not at a loss. According to the study film Equilar, Agrawal is entitled to $32 million.
New sources say Parag Agrawal’s contract with Twitter shows that he also owns stock in Twitter. According to a Twitter filing with the US Securities and Exchange Commission, Parag owns more than 128,000 Twitter shares, now worth roughly $7 million at the amount Musk is paying. So Agrawal might earn a bit more in layoff money, which could be close to $50 million.
However, the tone on Twitter isn’t precisely positive right now. The company’s 7,500 employees are concerned that they will not receive the payment Musk promised, and questions are being raised about whether Tesla staff should be walking through Twitter’s hallways.
It’s unclear if Musk will be a good corporate citizen and payout sacked employees regardless of whether he would follow his pledge for those he chooses to keep. If Musk breaks his promise, anticipate former employees to sue him in court.
Meanwhile, Musk is already bringing in personnel from his other businesses, such as inviting Tesla engineers to meet with Twitter product managers. Corporate governance experts would undoubtedly challenge whether it is ethical to utilize resources from a publicly traded firm to benefit what is, in principle, a completely different company.