Elon Musk's New Stock Policy: Employees Must Prove Their Worth

Elon Musk has introduced a new approach to stock grants at X (formerly Twitter), adding a twist that requires employees to prove their worth before they can receive their shares.

In an email sent to X staff, Musk outlined that stock options would be awarded based on the anticipated impact of each employee. This means that employees must submit a one-page document explaining their contributions to the company in order to qualify for their stock.

This development has added to the growing tension between X leadership and its workforce, especially after recent delays in the promotions process. Employees have been increasingly concerned about job security as the company, which has faced numerous challenges since Musk's takeover, continues to struggle.

Additionally, a source at X revealed that the company still owes employees their annual equity refresh, which was initially promised for April. Musk had previously assured staff that they would have regular opportunities to cash out stock, similar to the process at SpaceX, but this promise has yet to be fulfilled.

The last time X employees received a stock refresh was in October 2023, which valued the company at $19 billion—a significant drop from the $44 billion Musk paid for it. During that refresh, employees were granted Restricted Stock Units (RSUs) at a share price of $45.

The new requirement for employees to justify their stock grants is likely to increase uncertainty among the workforce, as they navigate the changing landscape under Musk's leadership.