Judge: Musk was overpaid
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Then in 2019, a shareholder named Richard Tornetta (who held 9 shares of Tesla) filed a lawsuit claiming that the compensation package was excessive & unfair, claiming the board had not acted in the best interest of its shareholders.
Some clown who holds 9 shares in Tesla took his complaint to court? And the complaint made its through system to be heard before a judge? Surprised it made past the claims clerk’s office.
I could see it if it were a class action suit involving a significant number of shareholders holding 30% or more of the company. But one guy with 9 shares?! No fucking way.
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Tesla...
Musk posted a poll asking whether Tesla should move its incorporation to Texas.
Probably some selection bias, but 87% said go.
Musk's announcement comes after a judge in Delaware voided his $55 billion compensation package at Tesla.
Musk isn't paid a salary for his work as Tesla CEO. Instead, his pay package is based on a series of goals that are tied to Tesla's financial growth.
According to the package, Musk would be granted stock equivalent to 1% of Tesla's outstanding shares whenever he met the 12 tranches of growth targets.
The ruling in Delaware could threaten Musk's title as the world's richest person, given that most of his wealth is tied to his equity in Tesla.
"Never incorporate your company in the state of Delaware," Musk wrote on X on Tuesday.
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Delaware has long been a state beneficial to incorporate in, because of tax advantages. And probably some other things I don't know about.
Does the judge's ruling make other companies rethink some of their incorporation or business practices?
“Cry havoc and let slip the DOGE of war!”
Those who cheered as J-6 American prisoners were locked in solitary for 18 months without trial, now suddenly fight tooth and nail for foreign terrorists’ "due process". — Buck Sexton
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Delaware has long been a state beneficial to incorporate in, because of tax advantages. And probably some other things I don't know about.
Does the judge's ruling make other companies rethink some of their incorporation or business practices?
@Jolly said in Judge: Musk was overpaid:
Does the judge's ruling make other companies rethink
I wonder if there's grounds for appeal in the case of Musk.
Think he can afford a lawyer?
How much revenue does Tesla generate for Delaware?
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Delaware has long been a state beneficial to incorporate in, because of tax advantages. And probably some other things I don't know about.
Does the judge's ruling make other companies rethink some of their incorporation or business practices?
@Jolly said in Judge: Musk was overpaid:
Does the judge's ruling make other companies rethink some of their incorporation or business practices?
I doubt it. I think this instance would be pretty rare. I think the benefits for companies are much more than the non-benefits to keep incorprorated in Delaware.
I looked, and 70% of US based Fortune 500 companies are incorporate in Delaware.
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Musk pulls Neuralink out of Delaware.
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Tesla is asking shareholders to restore a $56 billion pay package for CEO Elon Musk that was rejected by a Delaware judge this year, and to shift the company’s corporate home to Texas.
The changes, to be voted on by stockholders at a June 13 annual meeting, could be a tougher sell than when it was first approved in 2018. The Austin, Texas, electric vehicle maker is struggling with falling global sales, slowing electric vehicle demand, an aging model lineup and a stock price that has tumbled 37% so far this year.
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All of which is irrelevant. The bar was set, the compensation defined. He exceeded the requirements. Pay him.
@Mik I agree. If that was the rules/outline to begin with, tough to back out now.
Now, whether he is worth that payment is another question.
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https://edition.cnn.com/2024/06/09/business/elon-musk-pay-package-shareholder-vote/index.html
The answer will come Thursday, when Tesla holds its annual shareholders meeting and announces results of shareholder votes on two proposals. One would once again approve the package of 303 million split-adjusted stock options, worth $46.9 billion as of Friday’s closing price. That’s down from the $51 billion those options were worth at the time of the decision.
