Elon Musk Demands X Employees Prove Their Worth for Stock Grants, Adding Pressure to a Troubled Company
Elon Musk, the head of both Tesla and SpaceX, has issued a new directive to employees at X, the platform formerly known as Twitter. In a move that reinforces his reputation for demanding work ethics, Musk is requiring employees to demonstrate their value to the company before receiving their expected stock grants.
Key Takeaways:
- New performance-based stock grants: X employees must now submit one-page summaries outlining their contributions to the company to be eligible for stock options.
- Potential for job cuts: This new policy arrives amidst an ongoing atmosphere of uncertainty at X, with employees bracing for potential layoffs.
- Delayed promotions and stock refreshers: Employees are facing delays in both promotions and the issuance of annual equity refreshers, which were originally due in April.
- Unfulfilled promises: Musk had initially assured employees that they would receive stock cash-outs similar to those given to SpaceX employees, but this promise remains unfulfilled.
- Shrinking company value: This policy comes as X’s valuation has significantly decreased since Musk’s acquisition, dropping from $44 billion to $19 billion.
H2: A Pattern of Demanding Management
Musk’s directive is indicative of his known management style, characterized by a high-pressure, results-oriented approach. He has historically demanded long hours and tireless dedication from employees at his companies. This recent change at X further emphasizes the importance of tangible results and measurable impact in his view.
H2: Challenges and Uncertainty at X
The new stock grant policy adds another layer of complexity to the already turbulent atmosphere at X. The platform has been facing several challenges since Musk’s takeover.
H3: Internal Struggles and Discord
A recent clash between leadership and staff over delayed promotions has heightened anxiety amongst employees. With the promise of regular stock refreshers also unfulfilled, feelings of uncertainty and even resentment are growing.
H3: Financial and Legal Battles
X has been embroiled in legal battles as well, recently winning a $500 million severance lawsuit. However, the company is also facing a $20 million lawsuit from former Twitter board member Omid Kordestani, further adding to the financial and legal strains on the company.
H2: X’s Investors Unveiled
Amidst this turmoil, the names of X’s investors were recently revealed in a court filing, including notable figures like Saudi Prince Al Waleed bin Talal al Saud, Twitter co-founder Jack Dorsey, and Andreessen Horowitz.
H2: A Shifting Landscape for X
With Musk’s latest demands on employees and the mounting internal and external pressures, the future of X remains unclear. The platform’s financial stability, future direction, and the morale of its workforce are all under scrutiny. Will employees be able to meet Musk’s high expectations of performance, or will this lead to further departures and uncertainty at a company struggling to find its footing?