Musk sets new conditions for X employees to receive stock
What's the story
Elon Musk, the owner of X, has introduced a new condition for his employees to receive their much-awaited stock grants, as reported by The Verge.
In an email to staff, Musk stated the company plans to distribute these stocks based on each employee's projected impact.
To qualify for this benefit, staff members are required to submit a one-page summary detailing their contributions toward the company's growth and success.
Tensions rise
Stock grants add to existing concerns
The announcement of these stock grants comes at a time when relations between X's management and its employees are strained. This is due to the recent unexplained postponement of the promotions process.
Amid ongoing challenges under Musk's leadership, there are fears among employees about potential job cuts.
A source from within the company has revealed to The Verge that X still owes its staff their annual equity refresher, originally scheduled for distribution in April.
Unfulfilled assurance
Musk's unfulfilled promise to X employees
Musk had previously assured his staff that they would be able to regularly cash out their stocks, a practice similar to what is followed at SpaceX. However, this promise remains unfulfilled.
The last stock refresh for X employees took place in October 2023 when the company was valued at $19 billion, significantly lower than the $44 billion Musk paid for it.
During this refresh, employees were given restricted stock units (RSUs) at a share price of $45.