What is Twitter's Severance Pay for Sacked CEO Parag Agrawal

Oct 28, 2022, 13:11 IST

After Elon Musk completed his $44 billion deal to buy micro-blogging site Twitter, he first fired CEO Parag Agrawal, CFO Ned Segal, and Vijaya Gadde, head of legal policy, trust, and safety. After the removal of the three top executives, all eyes were on what the severance package would be given to the Indian-origin Agrawal.

Bloomberg reports state that as part of the deal, Agrawal will vest 100% of his unvested equity awards. This would mean that he would make $ 42 million which is almost the buyout of Twitter by Musk. The estimate includes a year's worth of Parag's base salary plus accelerated vesting of all equity awards. Reports state that Agrawal's total compensation was $30.4 million when he was the chief technology officer, in 2021 according to Twitter's proxy. As Twitter CEO, Agrawal's salary was reported to be $1 million annually.

Parag Agrawal was appointed Twitter CEO in November last year after co-founder Jack Dorsey unexpectedly resigned. It is reported that Musk was not on good terms with Agrawal and had also said that he did not have faith in the management and the way things were being operated. Musk had also cited concerns about the number of bots on the platform and later allegations raised by a company whistleblower.