Parag Agrawal, fired from Twitter, may receive $42 million compensation
What's the story
Elon Musk has brought down the curtains on Parag Agrawal's reign as Twitter's CEO. Firing Agrawal was among Musk's first orders of business after completing the acquisition of Twitter. However, Agrawal won't be leaving the company empty-handed. He is set to receive a whopping $42 million payout, according to research firm Equilar. Agrawal held the post of CEO for less than a year.
Context
Why does this story matter?
When Musk backed out of the deal to buy Twitter, Agrawal may have been one of the happiest people. Once the court set a deadline to complete the deal, it was clear that Agrawal would be one of the first casualties. It never looked like the two would be able to work together. At least, he can be happy about the payout.
Change of control
Agrawal's equity in Twitter will be vested automatically
Agrawal's massive compensation after the termination of his employment is estimated after taking into consideration his base salary and accelerated vesting of all his equity awards. According to an SEC filing, the company's Change of Control and Involuntary Termination Protection Policy automatically accelerates his shares as long as Musk fired him. Now that it has happened, he is up for a huge payout.
Compensation
His compensation will include base salary, PRSU, RSU, health benefit
Agrawal took charge of Twitter in November 2021 after former CEO Jack Dorsey stepped down. Prior to that, he was the company's Chief Technology Officer from 2017 to 2021. His current base salary is $1 million. His compensation upon severance will include performance-based restricted share unit (PRSU), restricted share unit (RSU), and health coverage.
Relationship
Relationship between Musk and Agrawal turned sour after good start
Notably, the relationship between Musk and Agrawal has been frosty of late. Private texts between the two that had surfaced before the Twitter-Musk deal went to the courts revealed that their relationship started on a good note. It went south after Musk decided to take over the company. In an SEC filing, the billionaire had expressed his lack of confidence in the management.
Information
How did Twitterati react to Agrawal's termination?
Twitterati had some tasty reactions to the news of Agrawal getting fired by Musk. Many were of the opinion that Indians should always have a government job for job security. Others made fun of Agrawal's next venture. Let's have a look at some of them.
Twitter Post
It's always better to have a government job
Doesn't matter if you are CEO of a gaint social media platform.
— manglam Tiwari (@manglamiam) October 28, 2022
The job security will only be in Government jobs. #ParagAgrawal #ELONMUSK pic.twitter.com/KoZXdYTb30
Twitter Post
One meme mocked Agrawal running sweets shop
Elon Musk fires Parag Agrawal from Twitter. pic.twitter.com/aFLu3FhOXL
— AnuragKetchup (@anuragkechup) October 28, 2022