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(CTN News) – Elon Musk has warned Twitter Inc’s board of directors that its members will get no salary if he acquires the company. The Tesla Inc CEO’s warning came in response to a tweet by investment advisor Gary Black, who alleged that Twitter’s board doesn’t prioritize shareholders’ interests. TWTR board members would no longer have jobs, which pay them $250K-$300K per year for a part-time job. That would explain a lot”, Black wrote, to which Elon Musk replied, “Board salary will be $0 if my bid succeeds, so that’s *$3M/year saved.”
Board salary will be $0 if my bid succeeds, so that’s ~$3M/year saved right there
— Elon Musk (@elonmusk) April 18, 2022
Black also pointed out the high salaries of the board members and said the board represents shareholders. He suggested that members should be removed if they refuse to act in shareholders’ best interests and must be replaced with people who understand “their fiduciary obligations”. Elon Musk has in the past claimed that the Twitter board doesn’t care about its shareholders and “owns almost no shares”.
Elon Musk pledges to take Twitter private
Elon Musk announced on April 14 that he had offered to buy a 100% stake in the microblogging site for $54 per share, which is equivalent to $43 billion. As the current owner of 9.1% of Twitter, Musk is planning to take the company private, which will mean its shares will no longer be traded. Elon Musk has blocked this move, however, by implementing a “shareholder rights plan,” which allows corporate boards to flood the market with so much stock that a takeover becomes prohibitively expensive
The company announced its plan in an official release, stating that it would be activated if anyone or any entity acquired more than 15% of the company. Currently, Elon Musk is the second-largest shareholder of the social media site after Vanguard Group, which recently surpassed him with a 10.3% stake.