Elon Musk is taking jabs at Twitter’s board of directors. With his potential takeover of the company, the Tesla and SpaceX founder said that he intends to reduce the board's salary to exactly $0 if his takeover bid succeeds.
Musk made his remarks in response to Future Fund partner Gary Black on Twitter, who pointed out that the company’s board of directors would all be out of a job if Musk takes over and makes the company private.
Black noted that the board members receive between $250,000 and $300,000 per year, “for what is a nice part-time job.”
“That could explain a lot,” he said, suggesting that the board members’ refusal to sell the company to Musk is motivated by their potential loss of personal income.
In his reply, Musk said that if his bid succeeds, he could potentially save the company around $3 million per year. Musk previously pointed out that the board's interests are not aligned with its shareholders.
"Wow, with Jack departing, the Twitter board collectively owns almost no shares! Objectively, their economic interests are simply not aligned with shareholders," Musk wrote, referring to company co-founder Jack Dorsey, who stepped down last year.
“The board serves to represent shareholders. If they refuse to act in the best interest of shareholders, they should be removed and replaced by new board members who understand their fiduciary obligations,” Black tweeted, echoing Musk’s remarks.
Jack Dorsey appeared to share Musk’s outlook on Twitter’s board of directors.
Responding to a tweet over the weekend that suggested “What I do know for sure is that this old Silicon Valley proverb is grounded in age-old wisdom that still applies today: Good boards don't create good companies, but a bad board will kill a company every time,” Dorsey wrote: “big facts.”
“[I]t’s consistently been the dysfunction of the company,” added Dorsey, in response to another tweet stating that the company’s beginnings were mired in “plots and coups, particularly among Twitter’s founding members.”
When asked if he is allowed to express his disapproval of the company’s board, Jack simply replied, “no.”