This is pretty funny: https://apnews.com/article/elon-mus...AKgcICjCE7s4BMOH0KDDwnuoC&utm_content=rundown "DOVER, Del. (AP) — Elon Musk is not entitled to a landmark compensation package awarded by Tesla’s board of directors that is potentially worth more than $55 billion, a Delaware judge ruled Tuesday." Musk has just done a Shitter poll asking people if he should move his company's incorporation to Texas. This is how a real CEO decides things for the company!!!
%% That is strange, the way he does polls on X-Twitter [NOT X-US Steel-old Carnegie Co]. NOT exactly equality, but number 2 key officer got $303k salary + $33,870,000 options pay-bonus Judge Mrs McCormick had a spicy comment in her ruling \Superstar Mr Musk was a ''self driver'' It may pay him to appeal, not a lawyer or stock tip
The Texas ponderable: "If a Tesla in FSD mode drives a woman across state lines to an abortion clinic, does that potentially open the company up to fines and litigation?"
This just looks like more government retaliation against Musk. The rationale is somewhat ridiculous given that there was a shareholder vote. If it was just board members for I could understand, but avoiding an action passed by the shareholders is crazy. I'm not the world's biggest Musk fan, but it would be crazy not to appeal and also look into this judge and how close the relationships she has are with the people who got her, her job. Maybeusk could get her salary voided too.
That compensation was fucking ridiculous. Where is that money supposed to come from? From profits and shareholders' earnings.
the argument was the negotiations between musk and the board were not done with the shareholders interests in mind and that the shareholders were given false information on the compensation plan.
It was to be his share of overall increased value. Remember, this compensation was contingent on certain metrics including share prices targets that many at the time said were insane/impossible. Now they are trying to punish him for executing and bringing shareholders along for the ride?!
Cry me a river .......... Elon Musk’s $55 billion Tesla CEO compensation gets voided by judge ........ "The process leading to the approval of Musk’s compensation plan was deeply flawed. Musk had extensive ties with the persons tasked with negotiating on Tesla’s behalf. He had a 15-year relationship with the compensation committee chair, Ira Ehrenpreis. The other compensation committee member placed on the working group, Antonio Gracias, had business relationships with Musk dating back over 20 years, as well as the sort of personal relationship that had him vacationing with Musk’s family on a regular basis. The working group included management members who were beholden to Musk, such as General Counsel Todd Maron who was Musk’s former divorce attorney and whose admiration for Musk moved him to tears during his deposition. In fact, Maron was a primary gobetween Musk and the committee, and it is unclear on whose side Maron viewed himself. Yet many of the documents cited by the defendants as proof of a fair process were drafted by Maron." ........ One of the main arguments from Tesla shareholders who are against this lawsuit is that “it was good for everyone”. Yes, Elon gets 6% more of Tesla, but Tesla gets $600 billion more in valuation. The judge had an answer to this argument: At a high level, the “6% for $600 billion” argument has a lot of appeal. But that appeal quickly fades when one remembers that Musk owned 21.9% of Tesla when the board approved his compensation plan. This ownership stake gave him every incentive to push Tesla to levels of transformative growth—Musk stood to gain over $10 billion for every $50 billion in market capitalization increase. Musk had no intention of leaving Tesla, and he made that clear at the outset of the process and throughout this litigation. Moreover, the compensation plan was not conditioned on Musk devoting any set amount of time to Tesla because the board never proposed such a term. Swept up by the rhetoric of “all upside,” or perhaps starry eyed by Musk’s superstar appeal, the board never asked the $55.8 billion question: Was the plan even necessary for Tesla to retain Musk and achieve its goals? .......... https://electrek.co/2024/01/30/elon-musk-billion-tesla-ceo-compensation-voided-by-judge/
The shareholders voted for it. Who the hell is this judge to insert herself in and void a deal approved by the majority of shareholders? Have you spent even 2 seconds thinking about what kind of precedent this sets? An non-elected political appointee can step in after the fact and completely void a deal agreed to by the company, the ceo and the majority of shareholders. Show me where they lied. Nonspecific allegations of "being misleading" are not credible. I suspect that if I dig a little I'll find out that the details of the deal we available to the public prior to the vote.