In an unexpected move, Elon Musk has informed X employees that they must prove their value to the company if they wish to receive their long-awaited stock options. This announcement, made in an overnight email from Musk, outlines a new approach to stock grants that ties them directly to each employee's anticipated impact.
Prove your impact to secure stock options
To qualify for the stock options, X employees must submit a one-page summary detailing their contributions to the company. The leadership team will review this summary to determine whether an employee has made a significant impact and thus earned the right to receive the stock options. This move has added a layer of uncertainty for staff, many of whom were already anxious about their financial future at the company.
The stock grants were highly anticipated, especially after the recent delays in the company's promotion process, which management left unexplained. The ongoing struggles of X, formerly known as Twitter, under Musk's ownership, have led to widespread concern among employees, who have been bracing themselves for potential layoffs.
Unfulfilled promises and delayed equity refreshers
Adding to the unease, a source within X revealed that the company has yet to fulfil its promise of an annual equity refresher, initially slated for April. This equity refresher was meant to provide employees with additional stock options for their compensation package. However, despite assurances from Musk that employees would have the opportunity to cash out their stock regularly, similar to the practices at SpaceX, this promise still needs to be fulfilled.
The last time X employees received a stock refresh was in October 2023, when the company was valued at US$19 billion. This significantly dropped from the US$44 billion Musk paid when he acquired the company. During the October refresh, employees were given Restricted Stock Units (RSUs) at a share price of US$45. The reduced valuation of the company and the ongoing delays in fulfilling promises have only added to the growing concerns among the workforce.
A challenging environment for X employees
The new requirement for employees to justify their worth comes when the company faces numerous challenges. Since Musk's takeover, X has undergone several rounds of restructuring, with many employees already feeling the pressure of an unstable work environment. The added uncertainty of whether they will receive their stock options, which many had been counting on as compensation, will likely strain morale further.
For now, X employees must focus on crafting compelling summaries of their contributions if they hope to secure the stock options that were once promised without conditions. As the situation continues to evolve, the future of many X employees remains uncertain, with both their financial and job security hanging in the balance.
