Elon Musk Reveals $0 Salary Plan for Twitter Board After Takeover

• Elon Musk has revealed that Twitter’s board members will not receive a salary for serving if he were to complete the takeover of the company

• In a tweet from the billionaire on Monday, he plans to save the company $3 million every year by canceling out the compensation

• This comes after the billionaire made a $43 billion offer for the social media company on Thursday

Tesla CEO, Elon Musk announced on Monday that Twitter’s board of directors will not receive any salary for serving if he completes the acquisition of the social media company.

In a tweet from his official Twitter account on Monday, the billionaire said:

“Board salary will be $0 if my bid succeeds, so that’s $3M/year saved right there”

This comes a few days after the world’s richest man made a $43 billion offer for the social media giant, with plans to take the company private. Musk argued that the company has to be transformed into a private firm before it can become a forum for free speech.

Twitter responded to the hostile takeover attempt from the billionaire by adopting a “poison pill” strategy. 

What’s the poison pill?

In finance, the poison pill refers to a strategy that allows existing shareholders of a company to purchase fresh shares at a discount to the current trading price. This strategy makes a takeover extremely costly.

It is assumed that Elon Musk may be considering a potential more tender offer to Twitter shareholders that will allow him to take control of the company. The billionaire is yet to reveal who would be appointed to Twitter’s board if this attempt is successful.

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