Twitter Board of Directors Own Almost No Shares of Stock in Company, Elon Musk Notes “their economic interests are simply not aligned with shareholders”

Conservative Treehouse ^ | April 16, 2022 | Sundance

[Macho MAGA Man]

In the ongoing public battle over Twitter as a speech platform, one actual user of Twitter, Chris Bakke, wanted to see who exactly these Board of Directors are, who are attempting to stop Elon Musk from purchasing it.

Chris Bakke then noted how little the actual stock is owned by the company’s Board of Directors. Sans Twitter Founder Jack Dorsey, the combined ownership of the entire board equates to 77 shares of stock, worth around $3,200 bucks.

The Board of Directors [SEE BoD LINK HERE] consists of academics, tech executives, business and policy wonks, and a random baroness who doesn’t even use the service. These are the people who are making fiduciary decisions for all Twitter stock owners without any financial stake in the decisions they make for the company.

____________________

Further evidence the motivations behind the Twitter board have nothing to do with stewardship for their shareholders. Again, this is yet another datapoint highlighting the background structure of Twitter that Musk is exposing.

Twitter is not making a decision to decline the generous offer by Elon Musk because of stewardship or fiduciary responsibility to shareholders. The financials of Twitter as a non-viable business model highlight the issue of money being irrelevant. Twitter does not and cannot make money. Growing Twitter only means growing an expense. Growing Twitter does not grow revenue enough to offset the increase in expense.

There is only one way for Twitter to exist as a viable entity, people are now starting to realize this.

What matters to the people behind Twitter, the people who are subsidizing the ability of Twitter to exist, is control over the global conversation.

Control of the conversation is priceless to the people who provide the backbone for Twitter.

Once people realize who is subsidizing Twitter, everything changes.

That’s the fight.

[markman46]

But the BOD does not own shares of their own, no skin in the game

[outofsalt]

They have a lot of options which can be exercised in the event of change in control or termination for whatever reason; (begin on page 70) https://s22.q4cdn.com/826641620/files/doc_financials/2021/ar/2022-Prelminary-Proxy.pdf

[ETCM]

How did they get on the board? 77 shares between all of them, seriously?

They are elected by shareholders. I wonder how much mutual and hedge fund managers get paid for their proxy votes? They are the ones who hold the most equity in public corporations and they get to vote on behalf of their investors. So the folks at Morgan Stanley, Blackrock, Vanguard, etc. Since most small investors who hold stocks never send in their proxy votes, the fund managers have even more say. I bet that "say" isn't cheap.

[moehoward]

"The purpose of Twitter is control of thought."

Disseminate the official narrative. It's why the platform is so valuable to the left. Once it no longer performs that function, if it stops censoring common sense, what is its value?

[Jonny7797]

I just looked for myself. The board does receive cash compensation but the bulk of the total comp is paid in stock, that vests. The same is true for management. The CEO makes $1 million a year paid in cash, and then got $29 million in stock awards.

I’d say the compensation arrangements for everyone is quite aligned with shareholders.

[PubliusMM]

Loving all the Elon is doing to Twitter, even though his base reasons are, at best, suspect. I hope and pray that his plan is to restore truly free speech to the world.

[Macho MAGA Man]

I do too!

[Basket_of_Deplorables]

Each share usually gets a vote regarding board members. Elon can put up his own slate.

However, Black Rock owns a ton of shares. Or rather, they manage them. People in their funds actually own them, I believe.

But Blackrock currently gets to vote those shares. This should not be legal. The people invested in their funds should get those votes.

[tennmountainman]

Then allow share holders to vote.l

[Bellagio]

Gordon Gekko: Well, I appreciate the opportunity you’re giving me, Mr. Cromwell, as the single largest shareholder in Teldar Paper, to speak.

Well, ladies and gentlemen, we’re not here to indulge in fantasy, but in political and economic reality. America, America has become a second-rate power. Its trade deficit and its fiscal deficit are at nightmare proportions. Now, in the days of the free market, when our country was a top industrial power, there was accountability to the stockholder. The Carnegies, the Mellons, the men that built this great industrial empire, made sure of it because it was their money at stake. Today, management has no stake in the company!

All together, these men sitting up here [Teldar management] own less than 3 percent of the company. And where does Mr. Cromwell put his million-dollar salary? Not in Teldar stock; he owns less than 1 percent.

[Roccus]

Not unusual at all.
Back in the 80s, as a lowly teletypewriter repairman for ATTIS, I held more shares of AT&T stock than several members of the board....combined.
Token participation of 100 shares was common.