Elon Musk and his social media company, X (formerly Twitter), have reached a confidential settlement with four top former executives over a high-profile dispute involving $128 million in severance pay.
The executives — former CEO Parag Agrawal, CFO Ned Segal, Chief Legal Officer Vijaya Gadde, and General Counsel Sean Edgett — filed a lawsuit in 2024, alleging Musk deliberately withheld their severance as retaliation after his $44 billion takeover of Twitter in 2022.
According to court filings, all four were dismissed within hours of Musk assuming control in October 2022 — just one day before their severance payments and vested stock options, reportedly worth over $128 million, were due.
The suit referenced claims from Walter Isaacson’s authorized biography of Musk, which suggested Musk wanted the executives fired “for cause” to avoid paying severance, accusing them of misleading him during the acquisition. However, the executives insisted the terminations were unjustified and violated contract terms.
A U.S. District Court order dated October 1 confirmed that both parties have settled, pausing all depositions, including Musk’s, to finalize the agreement. The settlement terms remain undisclosed.
This marks the second major severance dispute Musk’s company has resolved in 2025, following an earlier settlement with another group of ex-employees who also claimed unpaid benefits.
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