Twitter Employees Express "Severe Concern" Over Musk's Refusal to Join Board

[Image source=AP Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Elon Musk, CEO of Tesla, who decided not to participate in the board of directors of Twitter, where he is the largest shareholder, stated in a filing submitted to regulators on the 11th (local time) that he "can be involved without restrictions in various issues related to Twitter," according to The Wall Street Journal (WSJ).

In the filing, Musk said, "Issues such as products and services, potential mergers, and governance matters are topics that can be discussed with Twitter's board and management," adding, "(I) can express my personal views on Twitter on social media or speak directly with Twitter executives and board members."

He also stated, "I have no plans or intentions to change my stake in the company," but added, "I reserve the right to change these plans at any time if deemed appropriate or in light of ongoing evaluations of numerous factors."

Experts view Musk's decision not to join the board as giving him the freedom to criticize Twitter while also allowing him to accumulate more shares. Wedbush Securities analyst Dan Ives said, "Musk may take a more hostile stance toward Twitter while increasing his stake." WSJ also noted, "As a director, Musk's stake is limited to less than 14.9%, but this increases the possibility that he could attempt a hostile takeover."

Some Twitter employees expressed frustration that Musk has caused uncertainty within the company. As Musk continuously comments on management directions through Twitter, there are expectations among employees that not only the corporate culture but also management policies could change significantly. One employee told WSJ, "There are concerns about how Musk's influence will change the company's direction."

Parag Agrawal, Twitter CEO, initially told employees that he would "invite Musk to allow employees to ask questions directly," but Bloomberg reported that the meeting was canceled. One employee said, "Musk's whip is very overwhelming," adding, "Employees are under a lot of stress." Another employee lamented, "Musk's involvement has just begun, and it is very unfortunate."