Elon Musk isn't just stopping at buying a stake in Twitter — he'll also have a seat at the table. As CNBC reports, Twitter is appointing Musk to the company's board of directors. He'll be of value as both a "passionate believer and intense critic" of the social network, according to chief executive Parag Agrawal.
An SEC filing shows that Musk will serve as a Class II director (that is, not top-tier) with a term that expires at the company's 2024 annual shareholder meeting. The appointment limits the stake Musk can hold. He can't own more than 14.9 percent of common stock during his tenure, and for 90 days afterward.
Twitter co-founder and former CEO Jack Dorsey thought well of the deal. In a response to the news, he believed Musk "cares deeply" about the planet and Twitter. Musk and Agrawal "lead with their hearts," he said.
It's too soon to say how much influence Musk will have as a director. However, he recently blasted Twitter for allegedly falling short of "free speech principles" and asked the social site's users if they want an edit button. He clearly intends to make his presence felt, not to mention thumb his nose at the SEC for its crackdown against his finance-related tweets.
I’m excited to share that we’re appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.— Parag Agrawal (@paraga) April 5, 2022