Tesla Inc TSLA Chief Elon Musk took to Twitter Inc TWTR on Monday morning to take a shot at the 11 directors who sit on Twitter’s Board.
What Happened: Gary Black, a managing partner of an investment firm tweeted to Musk saying “Let me point out the obvious: If Elon Musk takes Twitter private, the board members don’t have jobs anymore, which pays them $250k-$300k per year for what is a nice part-time job.”
Black is alluding to the fact that if Musk takes over, he’d be buying out the non-employee members who make a total of $2,611,945 in compensation annually.
Board salary will be $0 if my bid succeeds, so that’s ~$3M/year saved right there
— Elon Musk (@elonmusk) April 18, 2022
See Also: Another Company Considers Twitter Bid
Why It Matters: Musk is saying he would essentially release the non-employee directors on the Board, keeping only those at executive levels while taking $0 in compensation himself.
While Twitter has not yet decided the fate of Musk’s takeover bid, the company recently adopted a “poison pill” strategy that will make discounted Twitter shares available for purchase if Musk exceeds 15% ownership of the company.
Price Action: On Monday, Twitter shares rose 7.48% to close at $48.45, while Tesla shares rose 1.96% in the regular session, according to data from Benzinga Pro.
Photo: Includes an image from Tesla Owners Club Belgium on Flickr
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