New York, Oct 28: World’s richest man Elon Musk finally bought social media giant Twitter after closing the $44bn takeover deal.
Soon after he bought the company, Musk fired its three Indian origin top executives. He offered them “golden parachute” payouts worth more than $120m, according to news reports.
Musk reportedly immediately removed the chief executive, Parag Agrawal, finance boss Ned Segal, and Vijaya Gadde, the head of legal, policy and safety.
The debt-funded deal has become a costly exercise even for Musk, the world’s richest man, thanks to the value of his stake in electric car manufacturer Tesla, with bankers, advisers and lawyers all racking up significant fees.
After months of legal wrangling Musk agreed this month to continue with the deal.
The relationship between Musk and Twitter’s executives started cordially when the billionaire bought a large stake in the company. Agrawal offered him a seat on the board but relations rapidly turned hostile after Musk publicly criticised the company.
Under the golden parachute clauses, Agrawal, Segal and Gadde will be entitled to $122m in compensation for previous share awards, a year’s salary plus some insurance payments.
Agrawal is likely to receive the largest payout, worth $57.4m, while Segal and Gedde are entitled to $44.5m and $20m respectively, according to company filings.
The three executives also hold a cumulative 1.2m shares, which are likely to be bought by Musk as is standard in any takeover. Those payments would be worth $8.4m to Agrawal, $22m to Segal and $34.8m to Gadde.
