Musk asks X staff to justify their stock options
Elon Musk informed X employees they must submit a one-page document to qualify for stock options, amid tensions over delayed promotions, potential layoffs, and unmet equity refresher promises.
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Elon Musk has informed X (formerly Twitter) employees that they can receive stock options, but only if they demonstrate their contributions to the company. In an email, Musk stated that staff must submit a one-page document outlining their impact to qualify for the stock grants. This announcement comes amid ongoing tensions between X leadership and employees, particularly after a recent delay in the promotions process. Employees are also concerned about potential layoffs and the fact that the company still owes them an annual equity refresher that was due in April. Musk had previously promised that employees could regularly cash out stock, similar to practices at SpaceX, but this has not yet been realized. The last stock refresh occurred in October 2023, valuing the company at $19 billion, a significant drop from the $44 billion Musk paid for it. During this refresh, employees received restricted stock units (RSUs) at a share price of $45.
- Employees must submit a one-page summary to qualify for stock options.
- Tensions are high between X leadership and staff due to delayed promotions and potential layoffs.
- The company still owes employees an annual equity refresher from April.
- The last stock refresh valued X at $19 billion, significantly lower than Musk's purchase price.
- Musk's promise of regular stock cash-outs for employees has not been fulfilled.
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5 commentsExcept of course twitter is private so they can only sell stock they have (or exercise options) with consent of twitter, which seemingly has not been done. Nor have compensation changes due in April been done - again per the article - but I don’t know if “due” means contractual or stated compensation changes have not been made, or if twitter historically did per review/comp adjustment in April. Those are very different things.
9f course given musk’s track record of labor code violations, wage theft, illegal firing, and fraudulently claiming employees resigned, it’s entirely possible he’s trying overt wage theft.
Again as always: stock based compensation is worthless if you cannot freely exchange it for money, or if it can be retroactively seized.
Trying to deal with this mistake?
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