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Business News/ Technology / News/  Elon Musk's X demands THESE employees to return money; here's why

Elon Musk's X demands THESE employees to return money; here's why

Elon Musk's X is reportedly seeking repayment from six former Australian employees for overpayments caused by a currency conversion error.

For representation purposes only. (Reuters / Mario Anzuoni)Premium
For representation purposes only. (Reuters / Mario Anzuoni)

Elon Musk's X is demanding that at least six former Australian employees return funds they were mistakenly paid, according to a report by the Sydney Morning Herald (via HT). 

The company has reportedly warned of potential legal actions to reclaim these overpayments, which arose due to a currency conversion error from US dollars to Australian dollars. Internal communications from X's Asia Pacific HR department reveal that the overpayments, which occurred in January 2023, ranged from $1,500 to $70,000 per individual.

These payments were linked to a 'deferred cash compensation' plan tied to employee shares initially priced at $54.20 USD each, the amount Elon Musk paid when he acquired Twitter in 2022. The mistake happened because X applied an incorrect conversion rate, inflating the amounts by 2.5 times the correct value. None of the former employees have returned the overpaid sums, the report states.

Under Australian law, such overpayment errors must be reimbursed, although employees have the right to request a detailed explanation and proof of the mistake from the company. This issue surfaces as numerous former US-based X employees are still contesting for their severance payments.

In a related development, four ex-Twitter executives, including former CEO Parag Agrawal and ex-CFO Ned Segal, have filed a lawsuit against X seeking over $128 million in unpaid severance following their termination post-Musk's acquisition of the company.

In another significant move, Tesla shareholders recently voted to reinstate Elon Musk's record $44.9 billion compensation package, which had been previously annulled by a Delaware judge. This vote reflects strong support for Musk's leadership at the electric vehicle manufacturer. However, the compensation package is expected to remain in legal limbo for some time as Tesla appeals the Delaware judge's decision in the state's Chancery Court and Supreme Court.

Musk has hinted at uncertainties about his future with Tesla, suggesting on X that he would need a 25 percent stake in the company to prevent him from shifting his focus to artificial intelligence development elsewhere. He argues that a larger stake is necessary to control the direction of AI use.



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Published: 14 Jun 2024, 05:25 PM IST
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