Twitter’s new proprietor Elon Musk instructed workers Monday they will proceed to obtain inventory and choices as a part of an “ongoing compensation plan” regardless that the corporate is now non-public, in keeping with an inside memo considered by CNBC.
Musk stated the inventory plan will resemble the one in place at SpaceX, the place he’s additionally CEO. SpaceX conducts secondary offerings regularly as a approach for long-time stockholders to promote fairness, on condition that the corporate stays non-public greater than 20 years since its founding.
SpaceX workers are granted their inventory awards twice a yr, on May 15 and Nov. 15.
Musk instructed Twitter workers that “distinctive quantities” of shares will likely be granted for “distinctive efficiency.”
The billionaire started a rocky takeover of the social media firm after closing his $44 billion acquisition on Oct. 28. His management has been marked by large layoffs, spending pauses from some advertisers and confusion concerning the platform’s coverage adjustments. When Musk first took over, some Twitter workers were concerned that he would hasten to fireplace them earlier than a vital vesting date. Many have been paid, nonetheless, earlier than Musk applied an enormous workforce discount.
Learn Musk’s message to workers:
Although Twitter is now a non-public firm we completely will proceed to offer inventory and choices as a part of our ongoing compensation plan.
The inventory plan will likely be very similar to that of SpaceX, which has been very profitable. As with SpaceX, distinctive quantities of inventory will likely be awarded for distinctive efficiency.
–CNBC’s Lora Kolodny and Michael Sheetz contributed to this report