Elon Musk will slash Twitter executives' salaries and introduce measures to monetize tweets, the billionaire explained to his lenders before he sealed a $44 billion deal to buy the platform. It is believed that Musk made these offers to his financier to receive a massive amount for the Twitter purchase.
A recent filing revealed that the micro-blogging site gives in total $2.9 million in cash and stock awards to board members. But top executives in the company receive more money annually.
How Did Elon Musk Convince His Lenders?
While taking money from the banks, Musk had to convince them that his upcoming business is able to produce ample cash flow.
In the end, he clinched $13 billion in loans secured against Twitter and a $12.5 billion margin loan tied to his Tesla stock. He agreed to pay for the remainder of the consideration with his own cash, according to the Daily Mail.
Previously, Musk had made tweets that he could save $3 million after eliminating Twitter board directors' salaries.
Musk is Unhappy With Twitter Management
The billionaire is also said to have plans in place to remove Parag Agrawal. Musk already has Agrawal's replacement lined up, according to Reuters but it did not say who it will be. In a securities filing two weeks back Musk had pointed out that he doesn't have confidence in Twitter's management.
A 'Change in Control' clause is in place in the contract of Parag Agrawal since he took over from co-founder and former CEO Jack Dorsey. If Parag Agrawal is fired, he will receive a $38 million payout, according to the contract.
Also, Vijaya Gadde, Twitter's policy head, could receive huge cuts in her salary.
The Twitter executive last year received a salary of $600,000 and a whopping $17 million in stock options. Recently, Musk pointed out that he is unhappy with Twitter's censorship policies, which are decided by Gadde. Even the billionaire posted a meme, which has a picture of Gadde and maintained that Twitter's policies are influenced by left-wing executives.