Twitter Inc CEO Parag Agrawal would get an estimated $42 million if he were terminated within 12 months of a change in control at the social media company, according to research firm Equilar, reported Reuters.
It is not clear who will lead the company moving forward. Twitter is currently led by Parag Agrawal, who took over from co-founder and former boss Jack Dorsey last November.
But in his offer document, Musk told Twitter's board: "I don't have confidence in management."
Agrawal told employees on Monday that the future of Twitter is uncertain.
"Once the deal closes, we don't know which direction the platform will go," he said, according to the Reuters news agency.
Agrawal, who succeeded founder Jack Dorsey late last year, as well as CFO Ned Segal, have so-called “Change in Control” clauses in their contracts, according to Twitter’s latest proxy filing. Agrawal’s clause specifically cites his reporting to the “board of directors of a publicly-traded entity,” meaning any deal to take Twitter private would trigger the clause.
If Musk terminated their employment, Agrawal would be in line for a $38.7 million pay package, with Segal receiving a $25.5 million package. They would also need to meet “non-solicitation, non-disparagement and confidentiality conditions,” according to the Twitter proxy.
Of course, it is not at all clear that Agrawal wants such an outcome. In his statement announcing the deal, one could sense a melancholy tone: “Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important.”
Musk's targeting of Twitter has moved at remarkable speed. It emerged at the beginning of April that he had become the largest shareholder in the firm with a 9.2% stake.
He was then invited to join Twitter's board but turned down the offer before launching a surprise bid for the company on 14 April, saying he wanted to "unlock" its potential as a bastion of freedom of speech.
Twitter tried to fend off his bid, threatening to dilute the shareholdings of anyone who bought more than a 15% stake in the firm. However, its stance shifted after Musk revealed more financial details about his proposed bid.
He has secured $25.5bn of financing for the deal and will take a $21bn stake in the business. The board unanimously approved the bid, which will now be presented to shareholders for a vote.