Elon Musk, the CEO of X (formerly Twitter), has reportedly issued a new directive to his employees: they must prove their value to the company to receive their expected stock grants. This directive, which was revealed in an email to employees, indicates a shift in Musk’s approach to managing the social media platform.
Under this new system, X employees are required to submit a one-page summary outlining their contributions to the company. This summary will be reviewed, and based on its content, employees will be eligible for stock options. This move is seen by many as an attempt by Musk to incentivize employee performance and ensure that all employees are contributing meaningfully to the company’s success.
This new directive comes at a time when tensions between X’s leadership and its employees have been escalating. Employees have expressed dissatisfaction over delays in the promotion process and are increasingly concerned about potential job cuts. These concerns are exacerbated by the fact that X has yet to deliver the annual equity refresher to its staff, which was due in April.
Earlier this year, Musk promised employees that they would be able to cash out stock regularly, similar to SpaceX staff. However, this promise remains unfulfilled. The last equity refresh for X employees took place in October 2023, when the company was valued at $19 billion, a significant decrease from the $44 billion Musk paid for it. During this refresh, employees were granted restricted stock units (RSUs) at a price of $45.
Musk’s management style has been described as stringent, with employees often working unconventional hours for extended periods. This directive further emphasizes Musk’s focus on efficiency and accountability within X.
The company has also been facing legal challenges, both winning and losing some cases. Last month, X Corp won a $500 million severance lawsuit. However, earlier this month, the company was also sued by former Twitter board member Omid Kordestani over unpaid shares worth $20 million. In August, the names of high-profile investors in X were revealed in a court filing, including Saudi Prince Al Waleed bin Talal al Saud, Twitter co-founder Jack Dorsey, and Andreessen Horowitz.
This new directive from Musk underscores the challenges facing X under his leadership and highlights his ongoing efforts to restructure the company and ensure its profitability. The coming months will be crucial for X as the company navigates these challenges and seeks to regain its footing in the ever-evolving social media landscape.
