Elon Musk, the billionaire founder of Tesla Inc, says that if he acquires Twitter, he will cut the salaries of its board of directors to zero.
Twitter currently has 11 board members, including co-founder Jack Dorsey and recently appointed chief executive Parag Agrawal.
In a tweet on Monday, Musk wrote, “Board pay will be $0 if my bid is successful, so that’s ~$3M/yr saved there.”
Musk was responding to a tweet from Gary Black, an investment adviser, who alleged that the interests of the board of directors did not align with the interests of the company’s shareholders.
Black said if Musk acquires Twitter, board members would lose their jobs by $250,000 to $300,000 a year.
The board salary will be $0 if my bid is successful, so that’s ~$3M/yr saved there
— Elon Musk (@elonmusk) April 18, 2022
According to a filing with the U.S. Securities and Exchange Commission (SEC), Twitter is paying about $2.9 million in cash and stock to board members.
Musk had earlier claimed that Twitter’s current board members collectively own relatively little stock in the company.
“Wow, with the departure of Jack (Dorsey), Twitter’s board collectively owns almost no stock!” Musk tweeted.
“Objectively, their economic interests are simply not aligned with those of shareholders.”
Wow, with Jack gone, the Twitter board collectively owns almost no shares! Objectively, their economic interests are simply not aligned with those of the shareholders.
— Elon Musk (@elonmusk) April 16, 2022
Following Musk’s $43 billion bid to buy the company, Twitter’s board passed a time-limited shareholder rights plan, also called a “poison pill” to ward off a possible hostile takeover.
Musk is currently Twitter’s largest individual shareholder after acquiring a 9.2% stake in the company.
Twitter later announced that Musk would join its board, but the billionaire rejected the seat.