New York (US) | Jagran Business Desk: Although Elon Musk is yet to close the deal to buy micro-blogging website Twitter, he has already decided to make drastic changes at the top, including replacing its Chief Executive Officer (CEO) Parag Agrawal, according to a report by Reuters.
The report quoting sources claimed that Musk has already lined up a new CEO for Twitter, who will replace Agrawal once the two sides complete the USD 44 billion sale deal this year.
Agrawal, who replaced Jack Dorsey as CEO in November last year, will receive USD 42 million as compensation package if his contract is terminated within 12 months of a change in control.
The Reuters report comes at a time when Agrawal has been facing the wrath of his employees who are worried about losing their jobs. At the internal town hall meeting last week, Twitter employees had openly expressed their anger against Agrawal.
"I'm tired of hearing about shareholder value and fiduciary duty. What are your honest thoughts about the very high likelihood that many employees will not have jobs after the deal closes?" one Twitter employee asked Agrawal, in a question read aloud during the meeting.
Agrawal answered that Twitter has always cared about its employees and would continue to do so.
"I believe the future Twitter organization will continue to care about its impact on the world and its customers," he said.
Employees also told executives they feared Musk's erratic behavior could destabilize Twitter's business, and hurt it financially as the company prepares to address the advertising world in a presentation next week in New York City.
"Do we have a strategy in the near-term on how to handle advertisers pulling investment," one employee asked.
Sarah Personette, Twitter's chief customer officer, said the company was working to communicate frequently with advertisers and reassure them "the way that we service our customers is not changing."
After the meeting, a Twitter employee told Reuters there was little trust in what executives had to say.
"The PR speak is not landing. They told us don't leak and do a job you are proud of, but there is no clear incentive for employees to do this," the employee told Reuters, noting that compensation for non-executive staffers is now capped because of the deal.
However, Agrawal urged staff to expect change in the future under new leadership, and acknowledged that the company could have performed better over the years.
Agrawal urged staff to expect change in the future under new leadership, and acknowledged that the company could have performed better over the years.
(With Reuters inputs)
Posted By: Aalok Sensharma