Billionaire Elon Musk has reportedly announced that employees at his social media company X (formerly Twitter) will receive their stock options based on their contributions. In an email sent to staff, reported by The Verge, Mr Musk told employees that the company would reward stock options based on employee impact and that workers would need to submit a one-page summary of their contributions to X to get them. Notably, this decision has reportedly created further tension among employees following recently reported delays in promotions and concerns about layoffs.
Citing sources, The Verge also reported that X employees were still waiting for their annual equity refresher, which was expected in April. The billionaire had assured X staff that they could regularly cash out stock, similar to SpaceX staff, according to two employees. However, he has not yet followed through.
The last stock refresh for X employees was in October 2023, valuing the company at $19 billion - significantly less than the $44 billion Mr Musk paid for it. Employees reportedly received RSUs at a share price of $45 during this refresh, the outlet said.
Elon Musk acquired Twitter in October 2022 in a $44 billion deal. He laid off almost half the employees shortly after his takeover of the company and sent a hardcore ultimatum to the remaining staff.
Earlier this month, this controversial ultimatum to employees also resulted in a legal victory for a former X worker. An Irish court ordered the microblogging platform to pay over $602,640 (approximately Rs 5 crore) to Gary Rooney, who was fired in December 2022 after Mr Musk's takeover of the company. Mr Rooney held a senior procurement role at the time of his dismissal. He had been employed by X since September 2013.
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Ireland's Workplace Relations Commission held Mr Rooney had been unfairly dismissed in 2022 and ordered X to pay him a huge amount - the largest sum the agency has ever awarded. The Commission heard that X maintained that the employee had resigned voluntarily after he failed to tick a box committing to new unspecified working arrangements in an email from the company's new owner Elon Musk.
However, the Irish Workplace Relations Commission refused to buy this argument and ruled that not clicking "yes" in response to the email did not constitute an act of resignation. "It is not OK for Mr. Musk, or indeed any large company to treat employees in such a manner in this country or jurisdiction. The record award reflects the seriousness and the gravity of the case," the complainant's solicitor Barry Kenny said.
