Tesla’s CEO cannot own more than 14.9% of Twitter’s common stock, either as an individual shareholder or as a member of a group while he is the director of Twitter
Tesla’s CEO cannot own more than 14.9% of Twitter’s common stock, either as an individual shareholder or as a member of a group while he is the director of Twitter
Twitter Inc said Tuesday it would add top shareholder and Tesla CEO Elon Musk to its board of directors, a day after the billionaire announced a 9.2% stake in the social media company.
Mr. Musk cannot own more than 14.9% of Twitter’s common stock, either as an individual shareholder or as a member of a group, while he is the director of Twitter, the company said in a filing.
“I am pleased to announce that we are appointing @elonmusk to our board,” Twitter chief executive officer Parag Agrawal said in a tweet. “He’s both an ardent supporter and intense critic of the service, which is exactly what we need on @Twitter and in the boardroom to make us stronger over the long term.”
On Monday, Mr Musk announced his ownership of 73.5 million Twitter shares held by the Elon Musk Revocable Trust, of which he is the sole trustee.
Mr. Musk will participate in director benefits arrangements applicable to non-employee directors, the company said. Twitter will finalize its standard form of compensation agreement with Mr Musk, it added.
Mr. Musk will serve as a Class II director, with the term expiring at Twitter’s 2024 annual shareholder meeting.
Twitter shares are up 6% in pre-opening bell trade after closing over 27% on Monday.
