Tesla and SpaceX CEO Elon Musk has reportedly given new instructions to employees at X (formerly Twitter): Employees must prove their value to the company in order to receive expected stock grants.
What happened: Musk’s social media company plans to hand out stock options to employees based on the impact they expect to have on the company.
To be eligible for the shares, Company X staff will need to submit a one-page summary of their contributions to the company, The Verge reported, citing an email Musk sent to employees.
The move comes as a result of recent discord between X’s management and employees following unexpected delays in the promotion process.
The company has faced challenges under Musk’s leadership, and employees are bracing for possible layoffs.
See also: Take-Two Interactive Software shares rise today: What’s going on?
An X insider told The Verge that X has yet to provide employees with its annual stock refresher training, which was scheduled for April.
The tech mogul had previously assured employees that they would be able to cash out their shares periodically, just as SpaceX employees do, but this guarantee has yet to be fulfilled, the report noted.
The last stock renewal for Company X employees was in October 2023, when the company was valued at $19 billion, a significant drop from the $44 billion Musk paid for it.
During the shake-up period, employees were granted restricted stock units (RSUs) at $45 each, according to the report.
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Why it matters: As the world’s richest man, Musk is known for his strict management style and often demands that his employees work unusually long hours.
Company X has also faced legal challenges, some of which it has won: Last month, Company X won a $500 million severance lawsuit, and earlier this month, it was sued by former Twitter director Omid Kordestani over $20 million worth of unpaid stock.
In August, X’s notable investors were also named in court documents, including Saudi Arabian Prince Walesid bin Talal Al Saud, Twitter co-founder Jack Dorsey, and Andreessen Horowitz.
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