Since Elon Musk’s acquisition of Twitter (now X), some of the laid-off employees have been in conflict with the company. Now, a former Twitter executive chairman is suing X over compensation issues.
The plaintiff is Mr. Kordestani, a former Twitter chairman (2015 to 2020). Following the change in management, Kordestani was one of the employees laid off during the Elon Musk administration. Musk began the staff reduction process after considering that there were more employees than necessary. Significantly reducing the workforce would also help him mitigate the huge investment made.
Another former Twitter chairman is suing X for allegedly withholding compensation
Kordestani describes that he joined the Twitter team under certain promises. This led him to leave a good position at Google to earn a “significantly lower” base salary at Twitter (around $50,000 annually). However, the social platform’s management had promised him additional benefits in the form of stock options, performance-based restricted stock units, and restricted stock units. This would mean an additional package of $20,112,000 to be paid in case of dismissal.
The plaintiff claims that the company has not paid him the corresponding compensation. The lawsuit says that “X Corp. seeks to reap the benefits of Mr. Kordestani’s seven years of service to Twitter without paying him for it, despite clear contractual language requiring X Corp. to do so.” Although Kordestani was chairman since 2015, it seems he was already in the company 2 years before that.
Kordestani joins a list of several executives suing X for the same thing. They claim that there are millions of dollars in pending compensation. The lawsuit also refers to other similar cases as an argument in favor. It says that “Mr. Kordestani is one of many former Twitter employees whose compensation has been wrongfully withheld by X Corp. following Elon Musk’s purchase of the Company in October 2022.”
The former Twitter chairman is suing X in a California superior court. There is still no official word from X’s legal team on the matter.
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