Elon Musk Will Cut Twitter Board Members’ Salaries To $0 If He Can Acquire The Company
On April 4, Tesla CEO Elon Musk announced a roughly $3 billion investment in Twitter. Musk went from deciding whether or not to join Twitter’s board of directors to conduct a filled $43 billion hostile takeover bid to gain control of the company in a matter of weeks.
In response to the unwanted offer, Twitter’s board of directors took a “poison pill” aimed to prevent Elon Musk from completing his purchase. If Musk’s bid is accepted, the pill, technically known as a limited duration shareholder rights plan, will allow current Twitter shareholders to acquire the shares at a reduced rate. And it’s not beneficial for Musk’s side.
In response to the “poison pill,” Musk announced that if he is successful in acquiring the firm, he will pay board members $0 to save $3M.
Tesla’s CEO isn’t the only one who thinks this way. Twitter co-founder Jack Dorsey has also expressed his growing dissatisfaction with his company’s board of directors. In response to a thread from Garry Tan, co-founder of VC firm Initialized Capital, explaining the “plots and coups” that took on during the early days of the company, the former CEO stated the board has “consistently been the dysfunction of the company” on Saturday.
“Good boards don’t create good companies, but a bad board will kill a company every time,” Dorsey said in response to a tweet that quoted venture investor Fred Destin’s criticism of corporate boards.
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