On Monday, billionaire and CEO of Tesla Elon Musk said that if his plan to acquire Twitter pulls through, the company’s board of directors will not be compensated for serving under the board. His controversial tweet reads “Board Salary will be $0 if my bid succeeds, so that’s that’s ~$3M/year saved right there.”
Board salary will be $0 if my bid succeeds, so that’s ~$3M/year saved right there
The past weeks have been quite a heated one between Elon Musk who wants to acquire Twitter to make it a private company, and the company’s board who are strongly against the idea. Elon Musk rejected an offer to be on the company’s board after acquiring the largest stake in the company. He then announced his intention to acquire the company for $54.20 per share at a cumulative value of $43 billion. While speaking at the TED2022 conference, the billionaire mentioned that he had a plan B up his sleeves if his plan to acquire the company fails.
On Friday, the company adopted a limited duration shareholder rights plan, popularly referred to as the “poison pill”. The decision was reached after a unanimous vote by Twitter’s board. Under this structure, if any individual or group acquires beneficial ownership of at least 15 percent of the company’s outstanding common stock without the board’s approval, other shareholders will be allowed to buy additional shares at a discounted rate. This structure will be in place till the 14th of April, 2023.
Irrespective of this, Elon Musk is not backing down from his goal of buying Twitter. He recently teased a tender offer to Twitter’s board. This came in a Saturday tweet that read “Love Me Tender.” This may be the Plan B he intimated at the TED2022 conference last week.
If his plan to acquire Twitter ends up being successful, it is unclear who would be appointed to serve on the company’s board.
Twitter currently spends about $3 million in cash and stock award to board members and if acquired by Elon Musk acquired the company, it means that Board members including its CEO and founder Jack Dorsey will not receive any compensation.
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Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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