Elon Musk Offers Equity Grants to Twitter Employees Valued at Nearly 20 Billion dollar
In an effort to retain talent and boost performance, Twitter CEO Elon Musk has offered stock grants to his employees valued at almost $20 billion, according to a report by The Wall Street Journal. While the exact number of employees and shares offered remain undisclosed, Musk had informed his staff about the grants via email in February. The grants will be in addition to any equity that was converted to cash after Twitter’s acquisition
in October 2022. These new grants will vest over four years.
In the past, Twitter has offered stock-based compensation to employees as part of their overall compensation. The stock-based compensation model is popular among many IT companies in the United States. In 2021, Twitter spent close to $630 million on stock-based compensation for its 7,500 employees at that time.
Currently, Twitter’s workforce has been reduced to about 2,300 employees since Musk fired thousands of employees after
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the company for $44 billion in October 2022.
The social media platform has faced a recent round of job cuts since the acquisition, with at least 200 employees or about 10% of the workforce being laid off last month.
When The Wall Street Journal reached out to Twitter for further clarification, the company responded with a poop emoji. On the other hand, Elon Musk tweeted that Twitter would be providing an auto-response to media inquiries.
firm SpaceX has been using company stock to attract and retain its employees. SpaceX, which is privately held, periodically allows its current and former employees to sell their shares in order to monetize their holdings. SpaceX's latest valuation stands at $140 billion, almost five times more than its 2018 valuation.
Twitter's new equity grants are expected to incentivize employees and help retain top talent in the company, following a year of significant changes under new leadership.