Twitter Deal: What is 'Golden Parachute', with the help of which Parag Aggarwal got billions in profit - Newztezz Online


Saturday, October 29, 2022

Twitter Deal: What is 'Golden Parachute', with the help of which Parag Aggarwal got billions in profit

The three big executives who were fired from Twitter because of the golden parachute will get compensation equal to Rs 1000 crore and shares worth more than Rs 500 crore.

At present, in the business world, there is only discussion of the Twitter Musk deal and the mathematics of who has benefited and lost from it is continuing. The most important development of the deal was when the top executive of the company was shown the way out as soon as Musk came. For many people, this seems like a loss deal for the top management of the company. But if you look at the figures, you will know how CEO Parag Agarwal was the biggest beneficiary in this whole reversal . Actually, in this era of change, Parag has got the benefit of Golden Parachute which is equivalent to several hundred crores of rupees. Before knowing what this golden parachute is, let's see what has been the benefit of all the three executives.

How much profit

Reuters quoted research firm Equilar as saying that for Musk to remove all three executives, he would have to pay a total of $ 122 million to all three. This amount is equivalent to about one thousand crore rupees. According to the research firm, because of the golden parachute, Musk Parag Aggarwal got $574 million i.e. Rs 465 crore. Chief Financial will pay Ned Siegel $44.5 million (Rs 365 crore) and Legal Affairs and Policy Chief Vijay Gadde $20 million (Rs 164 crore).

Not only this, apart from this, all three will also get a total of $ 65 million i.e. Rs 526 crore for the shares of Twitter which they acquired while in the company and for which Musk has also made a high offer. In this, the share of Gadde is the highest i.e. $ 3480 million. On the other hand, Segal will gain $ 22 million and Aggarwal $ 8.4 million. Aggarwal got a total salary of $ 30 million in the year 2021.

$100 million compensation to employees

On the other hand, based on Twitter's compensation policy, Musk may have to pay $100 million or more than Rs 820 crore to the fired employees, according to a New York Times report. Musk had indicated to lay off 7500 employees from Twitter. Estimates have been issued on the basis of this data in the report. It has been said in the report that if Musk leaves all these employees, then it will be a challenge for him to create so much cash flow.

What is golden parachute

The Golden Parachute is a rule designed to protect the interests of the employees. At the same time, with the help of this rule, companies attract many talented people to work here. This is a kind of compensation and is applicable in the case when the company fires an employee. It is also offered so that in the event of any change, the change will not be affected by any dispute. In the absence of the Golden Parachute, the matter can go to court and the situation of acquisition or merger can get stuck. That's why this rule has been made. This payment is made by combining the equity benefits with 100% salary and healthcare premium.

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