On Monday, Tesla and SpaceX CEO Elon Musk said that Twitter’s board of directors will not receive a salary if his acquisition of the company is successful.
In a Tweet, Musk wrote, “Board salary will be $0 if my bid succeeds, so that’s ~$3M/year saved right there.”
Presently, Twitter spends approximately $2.9 million in cash and stock awards to board members, according to a filing with the SEC. Executives do not receive additional compensation for their seats on the board.
Since building up more than 9% in Twitter stock, Musk has been on a push to acquire the social media giant, offering to buy it outright in a deal valued at around $43 billion.
In response to Musk’s offer, Twitter adopted a limited duration shareholder rights plan, nicknamed the “poison pill”, in a bid to keep off a potential hostile takeover. However, it is reported that the Tesla CEO may also be considering a potential tender offer to Twitter shareholders to take control of the company.
