Oh Elon! You are my new crush!!!
Musk Makes Big Twitter Announcement: Board Salary Will Be $0 If I Take Over – That’ll Save $3M Per Year
As Elon Musk, CEO of SpaceX and Tesla, is seeking to buy Twitter, he announced that if his bid succeeds and he takes over ownership of the social media giant, board members will not be paid anything.
“Board salary will be $0 if my bid succeeds, so that’s ~$3M/year saved right there,” Musk wrote in a Twitter post Monday.
This comes in the midst of Musk’s fight to acquire Twitter after buying the largest single share of the company.
Musk launched his effort to purchase Twitter after turning down a position on Twitter’s board since it came with the stipulation that he would have to cap out his shareholding at 14.9 percent, PBS News reported.
Musk instead offered to buy Twitter for $43 billion and take it private.
In response, Twitter has adopted a limited shareholder rights plan, what is known as a “poison pill.”
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This plan is an effort to fend off Musk’s hostile takeover by allowing existing shareholders to buy additional, discounted shares. This then dilutes the ownership interest of the hostile party (Musk in this case), Bloomberg reported.
Poison pills are the plans that companies adopt if they are trying to ward off activist investors or a takeover from someone wanting to drastically change the company (hence, the term “hostile takeover”).
As has already been clear seen, Musk is ready to make lots of changes to Twitter if he takes over, which now includes not compensating board members.
When he first bought his large share he began floating ideas for change, such as a potential “edit” button, and asking his Twitter followers in a poll if they thought the platform was committed enough to the principles of free speech.
“My strong, intuitive sense is that having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization,” he said during an onstage interview at a TED2020 event on Thursday, according to The Hill. “I don’t care about the economics at all.”