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Mexico City (apro) – The former executive president of Twitter and former board member – now offers Kordestani millions of dollars.
In 2022, South African tycoon Elon Musk bought the social network for $44 billion.
Twitter’s former CEO, CFO and top lawyer have filed a lawsuit against Musk over unpaid compensation from the current owner. Likewise, hundreds of employees have joined a massive arbitration case alleging that Musk wrongfully fired them and refused to pay fair severance.
Omid Kordestani joined Twitter in 2015 and the CEO position was created that same year as the platform was facing challenges with its corporate structure, leadership, and business operations, including disagreements at the board level over the company’s leadership, so Kordestani thought he could be more helpful by taking on the aforementioned role and serving as a mentor to Jack Dorsey, as he would be promoted from an interim position to CEO.
Although Twitter could only offer him an annual salary of $50,000 (less than 0.4% of his salary at Google), the social network offered him options and performance-based restricted stock units (“PSUs”) conditional on performance and Kordestani’s future value to Twitter, as detailed in the lawsuit filed in the California Superior Court in San Francisco.
“During his tenure, Mr. Kordestani helped Twitter return to growth and reach profitability milestones. In fact, annual revenue increased by approximately $1.5 billion during his tenure as CEO. In addition to his board role, Mr. Kordestani provided leadership support to Mr. Dorsey and played a significant role in the development of Twitter’s board and executive management team,” the lawsuit states.
Kordestani, who helped oversee the sale of the company to Musk in 2022, was compensated in part in stock. After the acquisition, the South Africans were allegedly required to pay Kordestani 800,000 stock options worth more than $20 million, but the indictment details that the payment has yet to be made.
Kordestani said the Twitter acquisition and board changes triggered automatic payment obligations for X Corp., but it has refused to meet them, adding to a long list of unpaid bills that have piled up under Musk’s watch. Many employees, owners and suppliers claim Musk has yet to pay.
In March, four former executives sued Musk, alleging that he withheld more than $128 million in severance pay after being fired from the company and refused to pay compensation for it. They said in the lawsuit filed in California federal court: “Musk doesn’t pay his bills, thinks the rules don’t apply to him, and uses his wealth and power to trample on anyone who disagrees with him.”
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