Dive Brief:

• Former Tubi executive Mahmoud Reza Banki has been appointed as the CFO of Elon Musk-controlled social media platform X, formerly Twitter. Banki joined the company in the role earlier this month, according to his LinkedIn profile and The Wall Street Journal.
• Banki, an Iranian-American citizen, was one of 73 public figures and executives to receive a presidential pardon from President-elect Donald Trump during the last days of his previous term, according to an executive grant of clemency. 
• Banki’s appointment is an “interesting choice that raises questions about where Musk is steering the company and what it means for the future of X’s corporate governance,” Shawn Cole, president of executive search firm Cowen Partners told CFO Dive in an email. Musk is a “notoriously challenging boss,” and his choice of Banki as CFO “seems consistent with Musk’s emphasis on loyalty and resilience, sometimes prioritizing these traits over conventionally ‘safe’ hires,” Cole said.

Dive Insight:

Musk — who is one of the world’s wealthiest people, the CEO of EV-maker Tesla and a major supporter of President-elect Trump — has repeatedly clashed with former leadership for the social media company since acquiring it in 2022. Banki appears to be the first publicly known CFO to take the company’s financial reins since Musk swiftly fired former CFO Ned Segal, along with CEO Parag Agrawal and other top company executives, upon gaining control, CFO Dive previously reported. 

Banki previously served as CFO and chief strategy officer at video streaming service Tubi, logging a six-year tenure in the role, according to his LinkedIn. He has also worked as an independent consultant and fractional CFO for over a decade, and is a founding member of CFO peer group the F Suite.  

When it comes to his hiring decisions, “Musk appears to value individuals who demonstrate an unwavering commitment, even if that sometimes translates to pushing ethical boundaries,” Cole said. His appointment of Banki “represents a willingness to bring in someone who Musk believes will go above and beyond, regardless of the challenges or ethical concerns.”

Musk’s loyalty-based hiring approach appears to mirror that of Trump’s; the CFO appointment comes as Musk is preparing to join the incoming administration.

Musk is gearing up to take the role of “efficiency czar” for the coming administration. Together with Vivek Ramaswamy — who previously ran for the Republican presidential nomination before withdrawing and endorsing Trump last year — Musk will lead the newly-created Department of Government Efficiency, according to a CNN report. 

The focus of the department will be to work to “dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies,” Trump said in a statement. 

Banki has his own Trump connection: He received a presidential pardon from Trump in January 2021 in association with 2010 charges that he made false statements related to government subpoenas from the Office of Foreign Assets Control, according to a statement from the White House at the time.  

The CFO was also charged and convicted at the time with conspiracy to violate the Iranian Transactions Regulation, violating the ITR and operating an unlicensed money transmitting business, among other counts, after transferring some $3.4 million to the U.S. from Iran, according to a summary of the case.

While the charges related to sanctions were overturned upon appeal, “the felony charges for making false statements have prevented Dr. Banki from resuming a full life,” the White House said at the time. “In the years since his conviction, Dr. Banki has dedicated himself to his community and maintained a sincere love and respect for the United States.” 

Tapping Banki for the appointment, despite his overturned convictions, could be a way to cultivate loyalty for Musk, Cole said. 

“Hiring someone with a controversial background whom other companies may hesitate to bring on board could indeed be a strategy for gaining Banki’s loyalty, understanding that the opportunity comes with strings attached,” Cole said. 

Banki will assume the CFO seat for X as the value of the site continues to plummet; while Musk took the company private following his $44 billion acquisition in 2022, investor Fidelity discloses the value of its stake in the company, which has since fallen by nearly 80% since Musk purchased the site, according to an October CNN report.

According to Fidelity’s valuation, X presently could be worth approximately $9.4 billion, a steep drop from the $44 billion Musk paid to acquire it. Musk currently owns approximately 79% of the platform, according to reports.

While X’s valuation reportedly remains shaky, Musk’s own net worth has spiked since voters opted to give Donald Trump a second term in the White House.   

Shares of electric vehicle company Tesla rose by 12% following the election, bumping up Musk’s fortune, Forbes previously reported. The EV company reported stronger than anticipated results for its Q3 in October, with revenues jumping by 8% largely due to its energy storage offerings, CFO Dive previously reported. 

Musk has currently inched out Amazon founder Jeff Bezos the richest man in the world, with a net worth of approximately $320 billion, according to the Bloomberg Billionaire Index. 

Musk is also taking the “efficiency czar” position as he continues to tussle with U.S. regulators about his pay package as CEO of Tesla, which has been bouncing around state courts for the past year. Two days after the election, Musk advocated for a change in corporation law that would place corporate governance in the hands of the federal government, Industry Dive sister publication Legal Dive previously reported.

X and Banki did not immediately respond to requests for comment.