Tesla and SpaceX CEO Elon Musk has reportedly given a new directive to X, formerly Twitter, employees. They need to prove their value to the company to receive their expected stock grants.
What Happened: Musk’s social media company intends to distribute stock options based on the anticipated impact of employees on the company.
To be eligible for the stock, X staffers must provide a one-page summary of their contributions to the company, reported The Verge, citing an email sent by Musk to employees.
This move comes in the wake of recent discord between X’s leadership and its employees, following an unexpected delay in the promotions process.
Amid the company’s ongoing challenges under Musk’s leadership, employees have been bracing for potential job cuts.
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An insider at X told The Verge, that X is yet to deliver the annual equity refresher to its staff, which was due in April.
The tech mogul had earlier assured employees that they would be able to cash out stock regularly, akin to SpaceX staff, but this assurance remains unfulfilled, the report noted.
The last equity refresh for X employees took place in October 2023, when the company was valued at $19 billion, a significant decrease from the $44 billion Musk paid for it.
During this refresh, employees were granted restricted stock units, or RSUs, at a price of $45, the report stated.
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Why It Matters: As the world’s richest person, Musk has been known for his stringent management style, often expecting employees to work unconventional hours for extended periods.
X has also been facing legal challenges and winning some of them. Last month, X Corp won a $500 million severance lawsuit. Earlier this month, the company was also sued by former Twitter board member Omid Kordestani over unpaid shares worth $20 million.
In August, the names of high-profile investors in X were also revealed in a court filing. The names included Saudi Prince Al Waleed bin Talal al Saud, Twitter co-founder Jack Dorsey, and Andreessen Horowitz.
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