Elon Musk's $55 billion pay package voided by Delaware judge

[rmt]

A stockholder who owned (at the time) ONLY NINE Tesla stocks sued and won. This was an agreement from 2018 where 73% of stockholders (excluding Musk and his brother) approved the compensation package and he's met his performance expectations - voided by a Delaware judge. It boggles my mind that someone with 9 shares of anything would go to the trouble of suing someone and for what? It's not like he's some normal business CEO - Musk is integrally involved in the engineering of the product. Can you imagine how many people he could help with life changing products using this $55 billion?

Musk announced a couple days ago that his Neuralink company successfully implanted a chip in its first human brain. My best friend has twin brothers with a genetic condition that makes them blind - vision is "next area after enabling phone/computer telepathy for those who have lost their mind-body connection" (paralyzed).

https://www.teslarati.com/elon-musk-...0with%20vision.

[Real Men Wear Green]

This isn't exactly some kind of starving orphans tragedy. Musk will be fine.

[rmt]

This isn't exactly some kind of starving orphans tragedy. Musk will be fine.

I'm hardly worried about Musk - I'm worried about the paralyzed and blind people around the world and what it would mean to their quality of life.

I wouldn't mind help with the laundry either - lol.

[Real Men Wear Green]

Musk is trying to make money. If putting computer chips in your brain will increase his wealth he will figure out a way to do it. He's got plenty of money and potential investors.

[bladefd]

This reddit post explains it very well:

To

someone that might ask, why is the board not allowed to set Musk's salary to whatever they want? Shareholders elected them so that is what the company wants right? Fiduciary Duty is a duty that someone as by law if they accept a position of trust over some financial entity. That is they have promised to do something for a beneficiary of a trust. In this case, the board of directors has a fiduciary duty to the share holders of the company. In this specific case it has to do with the board being good stewards of the assets of the company on behalf of the shareholders. Part of that would be challenging the CEO on their pay package to ensure that the money spent is worth it. A shareholder thought that the board breached it fiduciary duty to shareholders with Musk's pay package. The Court found the board didn't do their duty at all and essentially zero resistance was put up to the pay package. This is why his pay package was over turned despite the board approving it and the board being appointed by the share holders.

It would be like if Uncle Jimbob raided Nana's inheritance and someone said, but Nana made Jimbob the executor. How could that go against the deceaseds wishes if he was appointed by them? Well, Jimbob is in charge of a trust, the estate, and is expected to split up the estate via the best intentions of the deceased. There is a fiduciary duty there. This is why we have wills. To make that duty explicit. Boards likewise have that duty. It is likewise made explicit it law, and in the shareholder agreement.

So it's board members trying to go against the interests of the investors to benefit their friend musk. The board has a duty to the investors, not musk. They don't work for musk but rather the investors because it's a public company. The judge is well within his rights here to make that decision. If it was a private company, the judge wouldn't be able to. Hell, for a private company, there would be no public investors so this would never occur.

[rmt]

This reddit post explains it very well:

To

So it's board members trying to go against the interests of the investors to benefit their friend musk. The board has a duty to the investors, not musk. They don't work for musk but rather the investors because it's a public company. The judge is well within his rights here to make that decision. If it was a private company, the judge wouldn't be able to. Hell, for a private company, there would be no public investors so this would never occur.

As part of the compensation package, Musk would receive no salary, no cash bonuses and no equity, instead having compensation tied to the performance awards "which ensures that he will be compensated only if Tesla and all of its shareholders do extraordinarily well."

An investor could have purchased 41.61 Tesla shares with $1,000 on Jan. 23, 2018 when the compensation plan was announced, based on a split-adjusted price of $24.03.

The 41.61 shares would be worth $7,767.75 today, based on a share price of $186.68 at the time of writing. This represents a potential return of 676.8% over the last six years.

https://www.nasdaq.com/articles/if-you-invested-$1000-in-tesla-stock-when-elon-musks-compensation-plan-was-announced-heres

I'm sure Tesla investors are crying (sarcasm) over the 676.8% return they've made over the last six years. But yeah, let's not worry about the progress for humanity Musk could do with that $55 billion - let's focus on the semantics of it - like ANY Tesla investor from that time is complaining about what Musk has done for their investment (save this knucklehead NINE shareholder who sued and the gleeful Musk haters who celebrate this come uppance).

[Real Men Wear Green]

What kind of cash bonus do you even put on 55 billion dollars? Is it like tipping the waitress?

[bladefd]

As part of the compensation package, Musk would receive no salary, no cash bonuses and no equity, instead having compensation tied to the performance awards "which ensures that he will be compensated only if Tesla and all of its shareholders do extraordinarily well."

An investor could have purchased 41.61 Tesla shares with $1,000 on Jan. 23, 2018 when the compensation plan was announced, based on a split-adjusted price of $24.03.

The 41.61 shares would be worth $7,767.75 today, based on a share price of $186.68 at the time of writing. This represents a potential return of 676.8% over the last six years.

https://www.nasdaq.com/articles/if-you-invested-$1000-in-tesla-stock-when-elon-musks-compensation-plan-was-announced-heres

I'm sure Tesla investors are crying (sarcasm) over the 676.8% return they've made over the last six years. But yeah, let's not worry about the progress for humanity Musk could do with that $55 billion - let's focus on the semantics of it - like ANY Tesla investor from that time is complaining about what Musk has done for their investment (save this knucklehead NINE shareholder who sued and the gleeful Musk haters who celebrate this come uppance).

This is not the first time that investors went against the CEO of a company. Why are you acting as if this was groundbreaking and never happened before?

And this money goes back to the parent company, Tesla, so it's not like the investors or government eats it up. Tesla can build more factories with it or start a sub-company to improve some aspect of humanity, if that's your concern. I understand you are concerned for poor Elon, but Tesla and Elon will be just fine.

[rmt]

What kind of cash bonus do you even put on 55 billion dollars? Is it like tipping the waitress?

Huh? Musk gets NOTHING now.

36:19



Pardon me - 803.16% return

[Bill Gates]

Musk spent all of 2023 declaring that population decline was the biggest threat to the country.

So far he's spent 2024 complaining that they're are too many people coming into the country.


Make it make sense

[rmt]

Musk spent all of 2023 declaring that population decline was the biggest threat to the country.

So far he's spent 2024 complaining that they're are too many people coming ILLEGALLY into the country.


Make it make sense

There - now your sentence makes sense.

[Real Men Wear Green]

https://share.newsbreak.com/62ksgrh7

[rmt]

https://share.newsbreak.com/62ksgrh7

Is that all you can come up with? I personally don't care what drug(s) he uses as long as he gets this chip thing working for paralyzed and blind people.

[Real Men Wear Green]

Actually it was just something that popped up on my news feed this morning. I posted it for the sake of being an annoyance. There are plenty of negative articles on Musk but I'm not particularly interested in opinion pieces, I I prefer factual stuff. Good luck getting a microchip inserted in your brain.

[bladefd]

Actually it was just something that popped up on my news feed this morning. I posted it for the sake of being an annoyance. There are plenty of negative articles on Musk but I'm not particularly interested in opinion pieces, I I prefer factual stuff. Good luck getting a microchip inserted in your brain.

You know what I find hilarious? Conservatives spent 2020/2021 crying about microchips. Now, they are lining up for microchips because Elon is the one running it

What changed in that time?