Twitter is appointing Tesla CEO Elon Musk to its board of directors, according to a filing with the Securities and Exchange Commission. Musk will serve as a class II director until 2024. This is a type of position that can be used as an anti-takeover measure.
“The Company will appoint Mr. Musk to the Company’s Board of Directors (the “Board”) to serve as a Class II director with a term expiring at the Company’s 2024 Annual Meeting of Stockholders,” the filing says. “For so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9% of the Company’s common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions.”
He’s both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term. Welcome Elon!
— Parag Agrawal (@paraga) April 5, 2022
Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!
— Elon Musk (@elonmusk) April 5, 2022
In a tweet, Twitter CEO Parag Agrawal confirmed Musk’s new role on the board. He called Musk “both a passionate believer and intense critic of the service” and said he would “bring great value to our Board.” Musk responded, via Twitter saying he looks forward “to making significant improvements to Twitter in coming months!”
On Monday, Musk announced via an SEC filing he’d purchased a 9.2 percent stake in Twitter, despite his complaints about free speech on the platform.
This makes Musk the largest individual shareholder in the company. The same day Musk bought into Twitter, he polled followers about creating an Edit button. Agrawal replied by saying “the consequences of this poll will be important.”