CEO of Twitter, Parag Agrawal, has announced that Elon Musk has declaimed the offer to join the board. His appointment to the board was to become officially effective Saturday .
Elon is now the biggest shareholder after buying a 9.2% stake valued at more than $3 billion. For context, Twitter co-founder and former CEO Jack Dorsey’s stake in Twitter is just over 2% .
According to Parag Agrawal, “Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here”.
It read; Team, Elon Musk has decided not to join our board. Here’s what I can share about what happened.
The Board and I had many discussions about Elon joining the board, and with Elon directly. We were excited to collaborate and clear about the risks. We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders, was the best path forward. The board offered him a seat.
Although there are no particular reasons that suggested why the billionaire turned down the offer, however, Elon has been a high-profile critic of Twitter policies in the past. Last month he said he was giving “serious thought” to creating a new social media platform.
“Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy,” Musk tweeted last month. “What should be done?”
Twitter expects its board members to act in fiduciary capacity, this means that if Elon were to be a board member he would be bound to act in the best interest of the company. Putting the interest of the company before his own.
Looking at his personality, Elon likes to air his views and express his opinions, especially through his tweets. Being a board member would restrict him from posting some of the tweets he would like. He may even have his tweets subjected to vetting before he sends them out. This may have been difficult for him .
According to the statement, a background check was required. Most corporations especially multi-billion dollar corporations like Twitter need to run background checks on their board members for various reasons, one of which is to avoid any surprises as board members are vital to the decision making of these corporations and it is safe to be aware of who exactly a board member is.
While there are no situations that suggested that the billionaire objects to a background check, however, analysts are of the opinion that a billionaire would ordinarily object to scrutiny on their activities.
Elon Reeve Musk is an entrepreneur, investor, and business magnate.Besides owning a stake in Twitter, he’s is the founder, CEO, and Chief Engineer at SpaceX; early-stage investor, CEO, and Product Architect of Tesla, Inc.; founder of The Boring Company; and co-founder of Neuralink and OpenAI.