Twitter CEO, Parag Agrawal, announced on Monday that Elon Musk will not join Twitter’s board of directors. This invitation was extended to him after the magnate bought 9% of the shares of the company, becoming its largest shareholder.
According to Agrawal, Elon shared the decision not to join the board although the appointment was officially going to be effective on April 9th. Agrawal explained that it was Musk’s decision, and he thinks it’s the right thing to do. He also indicated that despite this decision, they will be open to his recommendations as they do with all Twitter’s shareholders.
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
According to corporate governance principles, board members must always act in the best fiduciary interest of a company and its shareholders, Agrawal said. He also commented that Twitter’s board had been “clear about the risks” of Musk deciding to join as a director. So far it is not known what kind of changes Elon Musk is coming from, but Agrawal has asked his employees to tune out the noise and focus on work.
Musk, founder of the electric car company Tesla, has been constantly polling its 81.4 million Twitter followers about the future of the social network. An example of this is one that he did on the same Saturday in which he asked his users if, in their opinion, Twitter was dying.
SpaceX founder says most of the followed accounts generate very little content or no content at all. He gave the example that @justinbieber hasn’t posted anything in the entire year and @taylorswift hasn’t posted anything in 3 months.
Most of these “top” accounts tweet rarely and post very little content.
Is Twitter dying? https://t.co/lj9rRXfDHE
— Elon Musk (@elonmusk) April 9, 2022
It’s unclear what direction the social network will take from Elon, but the billionaire could acquire additional shares now that he hasn’t accepted a seat on the social media company’s board, according to a regulatory filing released on Monday. By not joining the board, Musk is no longer subject to an agreement to keep his shares under 14.9%.
According to a presentation to the United States Securities and Exchange Commission (SEC), Musk has “no current plans or intentions” to acquire additional shares, but “reserves the right to change its plans at any time”. Considering the evaluation of various factors, such as the share price and the “relative attractiveness of alternative business and investment opportunities”. Expressed Musk.