Elon Musk not to pay compensation to Parag Agrawal, Vijaya Gadde? | Tech News

Elon Musk not to pay compensation to Parag Agrawal, Vijaya Gadde?

Twitter's new owner Elon Musk fired top executives Parag Agrawal, Vijaya Gadde, Ned Segal, according to reports. Here may be the reason why.

By:REUTERS
| Updated on: Oct 31 2022, 11:26 IST
When Elon Musk tweet sparked horror online abuse against Vijaya Gadde at Twitter
Elon Musk
1/6 Elon Musk tweet back in April had sparked a storm against Twitter's Vijaya Gadde. The SpaceX and Tesla CEO’s previous tweets have caused a controversy following his completed takeover of Twitter. (PowerfulJRE YouTube)
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2/6 Elon Musk’s old tweets about Twitter’s top lawyer Vijaya Gadde are back in the spotlight after he took a bold step on his first day as the new owner of Twitter by firing Twitter Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal and legal affairs and policy chief Vijaya Gadde. (Wikimedia Commons)
Elon Musk
3/6 Musk was responding to a tweet from Saagar Enjeti, host of a political podcast and called the move “incredibly inappropriate.” According to Bloomberg, while Musk didn't identify Gadde by name, the post was in response to an article in which she was mentioned. (AFP)
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4/6 Enjeti tweeted on April 27, “Vijaya Gadde, the top censorship advocate at Twitter who famously gaslit the world on Joe Rogan's podcast and censored the Hunter Biden laptop story, is very upset about the @elonmusk takeover.” (Breaking Points/YouTube)
Elon Musk
5/6 Musk has frequently used the social media platform as a way to criticize the company’s decisions, especially when they involve banning accounts from people who violate Twitter's rules and policies. Twitter has banned people like American rapper Ye, formerly known as Kanye West due a couple of anti-semitic tweets recently. (PTI)
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6/6 A flurry of negative, and even abusive tweets from Twitter users followed Musk’s comments directed at Gadde. Racist slurs were tweeted referencing Gadde’s Indian heritage, with words like “curry” used to target the Twitter lawyer. Users questioned Gadde and blamed that she “destroyed countless @Twitter accounts for speaking the truth.” Racist comments were even hurled at ex-Twitter CEO Parag Agrawal. (AFP)
Elon Musk
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Elon Musk fired Twitter's top executives in an effort to avoid hefty severance payouts. (AFP)

Twitter's new owner billionaire Elon Musk fired top executives Parag Agrawal, Vijaya Gadde and Ned Segal in an effort to avoid hefty severance payouts, while lining up other layoffs as soon as Saturday to avoid stock grants due on Nov. 1, according to media reports on Saturday.

Musk fired Twitter Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal and legal affairs and policy chief Vijaya Gadde on completion of a high-profile $44 billion buyout of the social media platform on Thursday, people familiar with the matter told Reuters.

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He had accused them of misleading him and Twitter investors over the number of fake accounts on the platform. According to research firm Equilar, the executives stood to receive separation payouts totaling some $122 million.

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Citing unidentified people familiar with the matter, The Information reported that Elon Musk terminated four top Twitter executives, including Agrawal and Segal "for cause," in an apparent effort to avoid severance pay and unvested stock awards.

In a tweet on Saturday LightShed analyst Rich Greenfield said Musk fired top Twitter execs "for cause," preventing their unvested stock from vesting as part of a change of control.

Twitter did not immediately responded to Reuters' request for comment.

Reuters wasn't immediately able to make contact with the fired executives.

Director of research at Equilar Courtney Yu told Reuters on Friday that the fired Twitter executives "should be getting these (severance) payments unless Elon Musk had cause for termination, with cause in these cases usually being that they broke the law or violated company policy."

Meanwhile, The New York Times reported on Saturday that Musk has ordered job cuts across the company, with some teams to be trimmed more than others and layoffs would take place before Nov. 1 date, when employees were scheduled to receive stock grants as part of their compensation.

Citing unidentified people familiar with the matter, the Times reported the cuts could begin as soon as Saturday.

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First Published Date: 31 Oct, 02:41 IST
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