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Seriously? Having been on both sides of a number of acquisitions I can tell you that these kinds of personnel changes are made typically at the (possibly indire

Seriously? Having been on both sides of a number of acquisitions I can tell you that these kinds of personnel changes are made typically at the (possibly indirect) request of the acquiring company. Things like "We've got a really create CMO that we're bringing on, we don't need any headwinds to them getting traction quickly" means "Get rid of the people who think they are in charge of marketing so that our person can set the table they want to set it." Or, "Some of our team is uncomfortable with Bob in the role he's in, he just doesn't seem like a good fit you know?" or any number of ways to communicate what executives they want moved out so that there will be spaces to be filled when the new team moves in. And in a deal like this where there is no "plan B" the CEO's exit compensation is entirely predicated on their ability to "set the table" well for the incoming executive team. So yeah, Parag is doing what Musk or Musk's team told him need to be done prior to starting there, and if he told them he wouldn't do it then no big package for him.

richardwhiuk 4y ago
That would normally happen post close. You are normally mandated to maintain the current operating position prior to close.
- ChuckMcM 4y ago
  I understand the 'normally' part as in "this is how it should be done." And yet in the roughly ten or so acquisitions I've been on the "inside" for (which is to say was at one of the two companies and was related either peripherally or intimately in the transaction from start to finish), every single one of them had some executive shuffling (aka separating) prior to the close. Clearly, it is biased to Silicon Valley and my experience is probably different than someone who worked in non-tech companies, but if I put it into a rule of sorts I'd say; During a fund raising round executive positions are the most secure and individual contributors the least, during an acquisition these are reversed.

richardwhiuk 4y ago

That would normally happen post close. You are normally mandated to maintain the current operating position prior to close.

ChuckMcM 4y ago
I understand the 'normally' part as in "this is how it should be done." And yet in the roughly ten or so acquisitions I've been on the "inside" for (which is to say was at one of the two companies and was related either peripherally or intimately in the transaction from start to finish), every single one of them had some executive shuffling (aka separating) prior to the close. Clearly, it is biased to Silicon Valley and my experience is probably different than someone who worked in non-tech companies, but if I put it into a rule of sorts I'd say; During a fund raising round executive positions are the most secure and individual contributors the least, during an acquisition these are reversed.