Last week, the saga of Twitter finally came to an end, and the new owner, Elon Musk, was already cutting heads on the first working day. The three directors who were fired will leave the company richer by a total of $187 million.
According to CNN, former CEO Parag Agrawal, former CFO Ned Sagal, and Chief Legal Officer Vijaya Gadde would have received a substantial amount even if they had retained ownership of the shares, but Musk also bought those at a price of $54.2 per share.
Of the three, Agrawal, who took over as CEO just under a year ago, had the least shares – 155,000, for which Musk will pay a total of $8.4 million. Sagal will receive $22 million for 406,000 shares, while Gadde will leave with $34.8 million for her 642,000 shares.
Golden parachute payments
Since their management contracts included a ‘golden parachute’ clause (which ensures a generous cash compensation in case of termination), Agrawal will receive a base annual salary of $1 million, while Sagal and Gadde will receive around $600,000 each. Additionally, their health insurance will be covered for a year, totaling around $73,000.
The most lucrative part is the value they were supposed to receive in the future based on their share ownership. According to this agreement, Agrawal will be paid $56.4 million, Sagal $43.8 million, and Gadde $19.4 million.
The total ‘golden parachute’ payouts amount to $121.8 million, and since this amount should be added to the value of the shares, the terminations will cost Musk $187 million.
