Elon’s $55Billion Tesla pay package voided [ADMIN WARNING: NO POLITICS / INSULTS].

[UnsungZero_OldTimeAdMan]

Tell that to the man child....

Tell that to the man child general public, media, investors, Tesla board and Wall St... all of whom enable him.

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[Greg Chick]

Needs?

 

[NY_Rob]

Needs?

okay.. needs "will have to"

 

[Greg Chick]

If he wants to not only own the earth, but Mars too. I am more of a common person that sees that as a bit rude and out of reason.
The people of the world I live in are getting a bit resentful. We are also being told that people of color of not from our camp are to blame, to me, the problem is a question of balance

 

[jplblue]

What is the root of the issue? The lack of negotiations or that shareholders were misled? If misled, how was that misleading? Too lazy to read the judge decision.

Package is only huge in retrospect. Back then, almost no one expected most of those milestones to be met.

Basically:

• "[D]efendants were unable to prove that the stockholder vote was fully informed because the proxy statement inaccurately described key directors as independent and misleadingly omitted details about the process."
• Because stockholders were not fully informed, "defendants [must prove] the fairness of the largest potential compensation plan in the history of public markets."
• Defendants didn't prove that the plan was fair because "[Musk's] ownership stake [already] gave him every incentive to push Tesla to levels of transformative growth", "[Musk] had no intention of leaving Tesla", and "[the] compensation plan was not conditioned on Musk devoting any set amount of time to Tesla."
• "[T]he board never asked the $55.8 billion question: Was the plan even necessary for Tesla to retain Musk and achieve its goals?"
• "In the final analysis, Musk launched a self-driving process, recalibrating the speed and direction along the way as he saw fit. The process arrived at an unfair price."

 

[downranger12]

Read the details and then come back.

The board of directors specifically broke Delaware laws that apply to their fiduciary responsibility and their CEO (Elon) broke laws regarding influencing the board. They also misled share holders by not disclosing required details of the arrangement. So the court voided the package.

The board of directors can put forward the same pay package again (assuming they follow the law this time) and put it to a shareholder vote.

Sounds legit....anything illegally done.....that party will lose the case.

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