Tesla CEO Elon Musk has declined the offer to join Twitter’s board of directors, Twitter CEO Parag Agarwal announced on Monday.
Last week, it was confirmed that Elon Musk had taken a 9.1% stake in Twitter, and the company had decided to offer him a seat on the board. However, Musk declined to join the board last Friday, the same day his board appointment became official.
Parag Agarwal says that “this is for the best”, and since Elon remains one of the biggest shareholders of Twitter, the board will “remain open to his input”.
If Elon were to join the Twitter board, he couldn’t have held more than 14.9% of the company’s stocks till he served as a Class II director until the company’s 2024 annual meeting of stockholders and 90 days after that. However, declining a seat on the board could indicate that Elon might indulge in trading Twitter stocks in the future as well.
“The board and I had many discussions about Elon joining the board and with Elon directly. We were excited to collaborate and clear about the risks. We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interest of the company and all our shareholders, was the best path forward. The board offered him a seat.” Agarwal tweeted. “Elon’s appointment to the board was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board.”
Musk’s purchase of Twitter stocks made their prices rose from $39.31 to $49.97 last Monday. However, they face a steady decline, with the stocks closing at $46.25 on Friday.
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