- LATEST
- WEBSTORY
- TRENDING
WORLD
What is 'golden parachute' system, through which ex-Twitter executives will be paid USD 122 million?
According to a report, ex-CEO Paras Agrawal alone would receive a total of USD 42 million payout.
Updated : Nov 01, 2022, 05:17 PM IST | Edited by : Raunak Jain
 "twitter, elon musk, golden parachute, parag agrawal, twitter layoff, ned segal, vijaya gadde")
TRENDING NOW
)
Good news! 48 students of this IIT college get Rs 60 lakh salary package, not IIT Delhi, IIT Bombay
)
This university, once renowned as 'IAS factory', reclaims its crown with UPSC topper Shakti Dubey's success, not in Delhi, Mumbai, Patna, it is in...
)
'Disgrace': Ex-Pak cricketer slams deputy PM for calling Pahalgam attack terrorists 'freedom fighters'
)
Meet actor who has worked with Akshay Kumar, Rishi Kapoor, he was part of biggest films, later went bankrupt, became watchman of a high-rise, he is...
)
'That was a bad one,' says US President Donald Trump on Pahalgam terror attack
)
Sister of terrorist, believed to be behind Pahalgam massacre, admits her brother is a 'Mujahideen'
)
What is TRF? Mask of Lashkar-e-Toiba, raised by Pakistan's ISI? Mystery behind name revealed
)
Meet Minahil Malik, Pakistani influencer who is going viral after Sajal Malik's alleged private video leak, here's why
)
Meet man who defeated Elon Musk to build world's largest..., Warren Buffett invested in his business, his net worth is...
)
Meet student who secured AIR 99 in JEE Advanced, still did not join IIT, dropped out of counselling for..., he is now..
)
Ground Zero box office collection day 1: Emraan Hashmi scores half of disaster Selfiee, film opens at only...
)
Pony ride operator detained in J&K after tourist accuses him of asking about religion in viral video
)
Big blow to MS Dhoni in middle of IPL 2025 as CSK skipper set to face huge loss of money due to....
)
Indian-Canadian couple's dream wedding in Bengaluru turns tragic as colour bomb explodes on bride's back, watch viral video
)
Bad news for Pakistan after Pahalgam terror attack, World Bank issues big warning, claims 1 crore Pakistanis on verge of...
Twitter's top executives, including Parag Agrawal and Vijaya Gadde, will be entitled to "golden parachute" payouts 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.
(Source: ANI)
