Elon Musk bilked Twitter staff out of millions in promised bonuses


If 2023 was the year of Elon Musk f–cking around, here’s to hoping that 2024 is the year that he really finds out. Last year, Elno told the employees who survived his mass layoffs in early November that they would receive 50% of their 2022 bonuses if they stayed with Twitter through the end of March 2023. In a turn of events that no one (everyone) saw coming, the bonuses were never paid out. So, his now former Senior Director of Compensation, Mark Schobinger, filed a lawsuit on behalf of himself and 2,000 other current and former employees to get that money, baby. Despite Space Karen’s best efforts to move the case to Texas, a federal judge in San Francisco, where Twitter has its headquarters, has ruled that under California law, Twitter is in breach of contract. Pay up, Apartheid Clyde.

Elon Musk violated employee contracts by stiffing workers at his social media company X out of millions of dollars worth of promised bonuses, according to a San Francisco federal judge. US District Court Judge Vince Chhabria, who was appointed to the post by Barack Obama, allowed a lawsuit against the company formerly known as Twitter to proceed on Friday.

Mark Schobinger, who was Twitter’s senior director of compensation before leaving Musk’s company in May, filed a lawsuit against X in May alleging breach of contract. Schobinger alleged in the lawsuit that senior company officials made verbal promises both before and after Musk acquired the platform for $44 billion last year that its employees would be paid 50% of their 2022 bonuses if they stayed with the firm through the first quarter of this year.

But the bonuses were never paid, it was alleged in the complaint.

Schobinger’s lawsuit was filed on behalf of himself as well as approximately 2,000 other current and former employees of X. The plaintiffs are seeking in excess of $5 million. In denying Twitter’s motion to dismiss the case, Chhabria ruled that Schobinger plausibly stated a breach of contract claim under California law and he was covered by a bonus plan.

“Once Schobinger did what Twitter asked, Twitter’s offer to pay him a bonus in return became a binding contract under California law. And by allegedly refusing to pay Schobinger his promised bonus, Twitter violated that contract,” the judge wrote.

Twitter’s lawyers argued that the company made only an oral promise that was not a contract, and that Texas law should govern the case, according to Courthouse News, which first reported the ruling.

The judge ruled that California law governed the case and that “Twitter’s contrary arguments all fail.”

[From Page Six]

While $5 million is a lot of money to us peons, it’s really a drop in the bucket for the big tech companies. Twitter is certainly not worth close to the $44 billion that Musk paid for it, but it’s still reportedly worth somewhere around $19 billion. Before Elon ran Twitter into the ground – whether intentionally or unintentionally – he could have paid out those bonuses. I know the whole industry has a volatile reputation for paying its workers well but treating them terribly, but this whole situation says a lot more about how bad of a leader and all-around sh–ty human being Musk is than anything else. I think Jacob Marley and the three spirits need to pay Elon a visit next Christmas.

Picture note by CB: These are just stock photos of overworked people because I know you don’t want to look at Elno’s stupid face. Credit: Resume Genius on Unsplash, Yan Krukau, Mikhail Nilov and Keira Burton on Pexels

You can follow any responses to this entry through the RSS 2.0 feed.

19 Responses to “Elon Musk bilked Twitter staff out of millions in promised bonuses”

Comments are Closed

We close comments on older posts to fight comment spam.

  1. Flowerlake says:

    The less we look and engage at Twitter, the less interesting it becomes for advertisers and the more Musk loses.

    • Rainbow Kitty says:

      100%. As soon as he took over I stopped clicking on any links that will take me to twitter or X. whatever we’re calling it now.

  2. Kokiri says:

    And there’s the DoD handing over even more money & control to Elon.
    What a mess of a situation all of this is. Twitter, Tesla, space x.
    What ever happened to the tunnels under LA? Did they get filled in I wonder.

    Elon got rich scamming money from people, no way he will pay any bonuses & his ridiculous fans will cheer him not, not realizing he’d screw them over too.

  3. lgtrent says:

    He didn’t even give out Jelly of the Month memberships? The gift that keeps giving all year long? Geez.

  4. Bumblebee says:

    That’s only one of several lawsuits filed against Twitter (Musk) by former employees for non-payment. I hope they all get their money.

  5. Steph says:

    I’m so confused by this. If the pay out date was supposed to be March 2023, why were they only getting 50% of their 2022 bonus instead of all of it?
    Or is this an additional payout that equals 50% of the already paid bonus?

    • BearCat says:

      It sounds like it’s 50% of the amount already paid. I work in compensation and I couldn’t imagine dealing with this crap. It already a thankless job (like many other jobs) and you throw this on top? No thank you.

    • BeanieBean says:

      I found the numbers a bit confusing, too, but I think the promise was that when musk acquired the Twitter in October he promised that if people stayed at least through the first quarter of 2023, they’d receive 50% of their 2022 bonuses–so that’s half of the entire previous year’s bonus for a quarter’s work. An enticing deal. And he reneged.

    • Rosie says:

      Ah, sorry! BearCat, Beanie, and Twin Falls are right. He’d pay them an additional bonus that was half of what they got for 2022 if they stuck around through the end of the first quarter of 2023. I could have been a little clearer!

  6. Swaz says:

    Elon Musk was just a bad fit for the company all around. I really loved the name TWITTER AND TWEETS with the little bird, so iconic so creative. He destroyed everything.

    • ED says:

      I’ve made it my life’s mission to NEVER update my Twitter app so it continues to display the bird and the name Twitter.
      I get a perverse pleasure every time I update all my apps except that one!

  7. JaneS says:

    Elon is a garbage person.
    Pay up.

  8. Giddy says:

    Musk is a cheap-ass thief, stealing from employees and assuming that he had robbed them so thoroughly that they wouldn’t have the wherewithal to come after him. Surprise!

  9. Cali says:

    Wow! $5 million is nothing to Elon. He should have just paid.
    The monthly burn rate for litigation can be jaw droppingly expensive. Elon will have to spend a huge amount of money, get bad pr coverage, and demonstrate to the world that he is a lying cheat. This seems so stupid to me.
    Any litigation experts want to weigh in?

    • Saucy&Sassy says:

      I’m not a litigator, but I see a parallel with how Trump did/does business. He’d rather pay the attorneys and make it too expensive for the other side to keep going. If the employees win, I wonder if they’ll ever get paid.

  10. Jules says:

    Thank you for the stock photos. I really didn’t want to look at his face. I’m in tech and years ago, when all my colleagues were slavering over their tesla’s, I swore I’d never buy one because I got such a bad vibe off him. And yeah, I was sooooo right.