Tesla And SpaceX Managing Director Elon Musk has reportedly issued a new directive to Xearlier ÞjórsárdalurEmployees. They must prove their value to the company in order to receive the expected stock awards.
What happened: Musk’s social media company plans to distribute stock options based on employees’ expected influence on the company.
To be eligible for the shares, X employees must submit a one-page summary of their contributions to the company, The Verge reported, citing an email Musk sent to employees.
This move comes in response to recent disagreements between X’s management and its employees following an unexpected delay in the promotion process.
Given the ongoing challenges the company faces under Musk’s leadership, employees are preparing for possible layoffs.
See also: Take-Two Interactive Software shares trade higher today: What’s going on
An insider at X told The Verge that X has not yet provided its employees with the annual refresher course on equity that was scheduled for April.
The tech mogul had previously assured his employees that they could regularly cash in on shares, similar to SpaceX However, this promise remained unfulfilled, the report says.
The last equity boost for X employees came in October 2023, when the company was valued at $19 billion, a significant drop from the $44 billion Musk paid for it.
As part of this renewal, employees were granted restricted stock units (RSUs) at a price of $45, the report said.
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Why it is important: As the richest person in the world, Musk is known for his strict management style and often expects his employees to work unusual hours for extended periods of time.
X has also faced legal challenges and won some of them. Last month, X Corp won a $500 million severance lawsuit. Earlier this month, the company was also sued by a former Twitter board member. Omid Kordestani about unpaid shares worth $20 million.
In August, the names of well-known investors in X were also disclosed in a court document. The names included The Saudi Prince Al Waleed bin Talal al SaudTwitter co-founder Jack DorseyAnd Andreessen-Horowitz.
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