Mr. Musk, who’s paying $54.20 a share for Twitter, has made it clear that he thinks he’s paying an excessive amount of for the corporate as its inventory has swooned in latest months. “Clearly, myself and different buyers are overpaying for Twitter proper now,” he stated on Wednesday throughout an earnings name for Tesla’s quarterly outcomes.
A spokesman for Mr. Musk’s authorized staff declined to remark. Twitter declined to remark.
Inside Twitter, staff have been on a knife’s edge since Mr. Musk grew to become the firm’s largest shareholder this 12 months. Issues about his possession have been compounded by the state of Twitter’s enterprise, which has been inconsistent.
Early this 12 months, Twitter thought-about cost-cutting measures, together with not changing staff who left due to attrition and small rounds of layoffs, two individuals with information of the plans stated. In latest months, Twitter has aggressively lower prices by freezing hiring for many jobs and lowering its actual property.
Employees are additionally involved that Mr. Musk won’t proceed compensating them as deliberate, 5 staff stated. Underneath the phrases of the deal, Mr. Musk agreed to proceed paying Twitter staff their comparable salaries and advantages for one 12 months. However their fairness compensation will change.
Twitter staff presently obtain common grants of shares within the firm, that are earned over time based mostly on their employment agreements. However, with Mr. Musk’s planning to take the corporate non-public and Twitter’s inventory set to be delisted, these grants are to get replaced with money. Shares that staff have already earned will likely be paid out on the value that Mr. Musk agreed to pay for Twitter.
Some staff stated they have been involved that Mr. Musk won’t honor that settlement given how he had repeatedly modified his thoughts on the deal. To handle issues, Twitter created an inside doc to reply questions on how fairness compensation may shift beneath Mr. Musk, three individuals with information of the matter stated.
On inside Slack channels, staff have tried to advise each other on learn how to handle their funds through the merger course of, stated three individuals acquainted with the conversations. Some have been suggested to obtain their fairness contracts in case Mr. Musk makes an attempt to delete or change the agreements, they stated.