Elon Musk wins back his $44.9 billion Tesla pay package in shareholder vote
Elon Musk wins back his $44.9 billion Tesla pay package in shareholder vote
If they approve an all-stock compensation package for Musk that was thrown out this year by a Delaware judge, it would almost guarantee he would remain at the company.
Tesla shareholders voted Thursday to restore CEO Elon Musk’s record $44.9 billion pay package that was thrown out by a Delaware judge earlier this year, sending a strong vote of confidence in his leadership of the electric vehicle maker.
The favorable vote doesn’t necessarily mean that Musk will get the all-stock compensation anytime soon. The package is likely to remain tied up in the Delaware Chancery Court and Supreme Court for months as Tesla tries to overturn the Delaware judge’s rejection.
Musk has raised doubts about his future with Tesla this year, writing on X, the social media platform he owns, that he wanted a 25% stake in the company in order to stop him from taking artificial intelligence development elsewhere. The higher stake is needed to control the use of AI, he has said.
The fools
I guess if you're hanging on to your Tesla stock at this point you must have some faith in Musk?
I'm not sure about that. It sure feels like if they had a "normal" CEO, the stock price would tank. The crazies who believe in him are the only thing keeping that stock price up. Voting him out (not voting for his pay package) would, I bet, result in a big stock price correction downward.
I wonder how tesla owners feel about financing the musky rats purchase of twitter?
This is wild, ‘yes to enrich shareholders i will dilute the shit out if them and give a coked out manbaby a 25% stake’
And giving a giant payday is very likely to inspire him to look for new things to buy. That's a full Twitter in bonus shares and I think Musk looks at his vast paper wealth and tends to always want a new project rather than for the numbers to just steadily go up.
Making a bad bet on Twitter which actually left him meaningfully poorer meant he'd be more likely to devote time to Tesla. Giving him a bunch of money to burn a hole in his pocket makes him more likely to try something else because it's effectively free.
Why wait for the numbers to steadily go up when you can pump-and-dump and get away with it? Which he does and does.
Do you really want him devoting more time to Tesla, though? His best-performing company is SpaceX, which is largely because he leaves it the fuck alone, for the most part.
tesla is fucked lol.
No, it's the customers who's gonna be fucked
And the employees
It's a great time to ditch your Tesla stock, folks.
If I held any Tesla shares, I would be rather cross right now.
Considering that his board are all fighting to latch onto his dick; ether family or friends...
... I can't imagine any serious investor being in on Tesla. There's just too much potential for graft.
There's just too much potential for
graftgrift.
Which is it, 56 or 44 billion? If you guys don't know, I'll take the difference.
It's stock so it was valued at $56 billion when it was initially blocked. Now it is valued at $44 billion.
If it's in the form of shares so the cash value goes up and down over time with the share price. He's also prevented from immediately selling those shares, so it's in his interest to stick with Tesla and try to ensure that it does well. It's not so ridiculous an arrangement as most people are interpreting it based on just a few headlines.
Come on man. How much good could be done with that instead of sending it to one person? I think personal wealth should get capped at 1 billion period (not even per year). Even if that cash went directly to employees, it would do more good for the company itself.
It is as ridiculous as arrangement no matter the form of currency. The inequality is grotesque at this point.
Lol, so Telsa is fucked?
"Well, I didn't vote for you."
You don’t vote for Musks!
Someone ELI5 why does a Delaware court have any say over tesla stock options?
This Reuters article provides a decent summary: https://www.reuters.com/legal/case-against-elon-musks-56-billion-pay-package-2024-01-30/
Tesla is incorporated in Delaware.
To add onto this for anyone interested, the reason it and many businesses are incorporated in Delaware specifically is because it has a very pro-business legal and judicial system. Many businesses benefit from choosing that state over others and can find loopholes that allow them to save money (though there have been efforts to eliminate those loopholes in much of the country).
Phil Edwards recently released a video on this, which is how I found out about it: https://youtu.be/b4q99EuZF_Q
And this is the article that inspired the video: https://www.atlasobscura.com/places/corporation-trust-center