Elon Musk mulls Spacex-like compensation structure for Twitter staff

Tesla Inc CEO Elon Musk has clarified how Twitter Inc employees will receive compensation and benefits following its takeover of the social media platform.

What happened

Musk interacted with Twitter employees on Thursday. He was asked how he compensates employees of the private company SpaceX and what approach he plans to take on Twitter after reaching his agreement, according to a transcription of the interaction published by Vox.

Musk said SpaceX is “operating in the best of both worlds,” where stocks and options are issued for everyone.

The contractor said SpaceX grants cash to its employees every six months and employees can sell their shares at an event.

“It worked very well for the whole company. So I think something like that would make sense on Twitter,” Musk said.

why is it important

Musk spoke about the dangers a publicly traded company faces when interacting with Twitter staff.

He said stock moves can be a distraction and put them at the mercy of short sellers and class action lawsuits, according to Vox.

“It’s like being in the public stockade, where they’re throwing tomatoes at you all day.”

This month, Musk said SpaceX’s Starlink activity isn’t expected to go public until 2025 or later.

SpaceX proposed a 10-to-1 stock split in February, with the value of each share reaching an impressive $560.

By Shivdeep Dhaliwal

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