Musk, the billionaire who acquired Twitter for $44 billion, fired its CEO Parag Agrawal on Friday. Reports suggest that the top executive won’t leave empty-handed, however.
Bloomberg reported that Agrawal’s unvested equity awards will vest 100% as part of the deal.
In accordance with Equilar, he will earn an estimated $42 million, according to Reuters. All equity awards will vest accelerated over a year, as well as Parag’s base salary. During his time as Twitter’s chief technology officer in 2021, Agrawal’s total compensation was $30.4 million. An annual salary of $1 million was reported for Agrawal as CEO.
Following Jack Dorsey’s unexpected resignation last November, Parag Agrawal became Twitter’s CEO. Musk’s arrival as a major shareholder and increasingly vocal opponent of Agrawal’s leadership disrupted Agrawal’s tenure as CEO. Neither party had been on good terms, and nothing was hidden from the public.
It was unlikely that Parag Agrawal would remain in his position after Musk’s involvement.
As Musk stated in one of his filings about the deal, he “has no confidence in management”.
Musk and Agrawal exchanged text messages early on during the deal process after Musk asked his followers whether Twitter was “dying”. In an April 9 letter to Musk, Agarwal wrote: “You are free to tweet ‘is Twitter dying?’ but it is my responsibility to tell you that it is not helping me make Twitter better in the current context.” Musk responded: “What did you accomplish this week?”
Twitter was taken over by Elon Musk on Friday after a bitter legal battle with the social media platform after Musk canceled the buyout deal in July, claiming Twitter misled him about the number of bot accounts.
In the case of Twitter, Musk was to face off in Delaware’s Court of Chancery on October 17 to get an order to close the $44 billion deal. Earlier this month, Musk proposed to proceed with his original $44 billion bid – ending Twitter’s lawsuit.