Twitter Inc said on Tuesday it would name top shareholder and Tesla boss Elon Musk to its board, a day after the billionaire disclosed a 9.2% stake in the social media company.
Mr Musk cannot become the owner of more than 14.9% of Twitter's common stock either as an individual shareholder or as a member of a group as long as he is the director of Twitter, the company said in a filing.
"I'm excited to share that we're appointing @elonmusk to our board," Twitter Chief Executive Officer Parag Agrawal said in a tweet. "He's both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term."
On Monday, Mr Musk disclosed his ownership of 73.5 million Twitter shares, which are held by the Elon Musk Revocable Trust, of which he is the sole trustee.
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Mr Musk will participate in the director benefits arrangements applicable to non-employee directors, the company said. Twitter will enter into its standard form of indemnification agreement with Mr Musk, it added.
Mr Musk will serve as a Class II director, with the term expiring at Twitter's 2024 annual meeting of stockholders.
Twitter shares surged 6% in trading before the opening bell, after closing up over 27% on Monday.
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