After reports last week that Elon Musk would accept an invitation to join Twitter’s board of directors now that he owns 9.2 percent of the social media giant, the billionaire entrepreneur has declined the company’s offer.
Musk’s reversal is believed to have occurred because accepting a seat on the board – which does not come with the power to fire executives or change the company’s direction unless Musk could acquire a majority stake – would have meant Musk agreeing to owning no more than 15 percent of the company. As a board member, he would also be expected to refrain from discussing and criticizing Twitter publicly, as he frequently does on Twitter.
“The board and I had many discussions about Elon joining the board, and with Elon directly,” Twitter CEO Parag Agrawal said in a statement on Sunday. “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.”
Agrawal added that pending a background check and formal acceptance, Musk’s appointment was to become officially effective on April 9.
“But Elon shared that same morning that he will no longer be joining the board. I believe this is for the best. We have and will always value the input from our shareholders and whether they are on our board or not. Elon is our biggest shareholders and we will remain open to his input,” he added.