Tesla board calls June 13 shareholder vote on Musk’s pay and move to Texas.
The same week they’re laying off 14,000 employees?
That’s what he is using as the cost saving to improve the profit margin and thus earn his bonus.
That’s like $4 million per laid off employee that’s going directly into Musk’s pockets. Ridiculous.
Man… And here I am waking up happy that my paycheck went through before the IRS withdrew what we owed.
It’s disgusting. $56 billion is enough to make someone the 18th richest person in America, and richer than some of the wealthiest whole families. 14,000 people have just had their jobs taken away through no fault of their own, the latest in what feels like a constant stream of large layoffs in multiple industries.
Look at how close Musk is to losing #1 in America - Musk is hemorrhaging money (mostly via Twitter) and others are catching up. If this is being driven by a narcissistic need to hold onto #1 it would make this ridiculous payout even more senseless.
“a constant stream of large layoffs”, job numbers says otherwise. You are falling for the "report on X without context and ignore Y which counters the implication we want made by reporting upon X insistently.
How much are all those shiny new jobs paying? What’s the cost of living in the areas those jobs are? How many jobs have been made? Does any of this have anything to do with the Tesla layoffs?
You are falling for the “liberal bootlicker talks confidently about things they haven’t actually looked into”
Jobs numbers, stock market, and work participation are all at decades lows. But don’t let those facts get in the way of your swallowing the doomer propaganda.
Most of those numbers are constantly massaged or “revisited,” similar to the way COVID price inflation wasn’t real according to numerous stats. I hear the economy is great, but thats not what most people on the street feel. The only people not upset are either pulling in more than 400k a year, are still living off profits from COVID market juicing, or sitting on large cash reserves and are enjoying high interest rates. However, I know substantially more people who are either dipping into savings repeatedly now, living with no savings, or worse off digging into credit. The market is somehow great when credit debit and delinquencies are at the highest levels ever recored, lulz Source from last week
First you lie, then you misrepresent, then you make up a completely irrelevant anecdote. All theses “substantially more people” go to a school in another town, so I wouldn’t know them.
The job, stock and work numbers are at record lows for the decade? I thought they were better than ever! Don’t let doublethink get in the way of your ability to critically assess the steaming pile of shit we’ve all been given
Employment numbers don’t account for people having multiple jobs. Unemployment numbers are often fiddled to make them smaller.
Layoffs are happening. That is no secret, it is widely reported. Some people might be finding other jobs, but that doesn’t mean the job they find pays as well.
Which is why the participation rate matters. Yup, they are, just in considerably less numbers than the new hires. Correct, in fact it is reported to and by the Gov. Pay rates are reported as well. No one said everyone everywhere. What was said was more new job hires than layoffs and pay rising faster than inflation. Feel free to claim whatever you like. If you could prove the claim, you’d make mint doing so.
Is there any information on how asset managers like vanguard/Blackrock will vote on this one with the proxy votes they have from index funds?
I can’t really imagine a justification that would make paying Musk those $56B be in the interest of investors.
Also just curious, is there any kind of clause regarding conflict of interest? Or can Musk vote for himself with his shares?
From another article I read said ~70% approved the package in 2018 before it was ruled excessive by a judge. I don’t see why that would change too much seeing as the stock is up by 600% since the vote. But Tesla loosing 40% of the value so far this year may make them think.
thanks, that’s some useful context.
However in my mind the stock price going up 600% since the last vote, and thus Elon “deserving” those $56B actually should have no relevance today.
It would matter if it were a charity, but as owner of a capitalist corporation that line of thinking shouldn’t matter. I’m sure there are plenty of people working at telsa that would “deserve” more pay, but they get as little as possible to keep them around. Why treat the CEO differently in that regard?
So the only 3 questions imo would be:
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Is Elon’s future involvement from this point on worth just paying him these $56B ( - whatever you’d have to pay him under a new compensation package)? And i have a hard time seeing how he would add this amount of value, since we are talking about a sum larger than the market cap of Ford or GM. Also compared to 2018 Elons “brand value” has gone way way down.
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How much damage can making Elon upset do to the company? Actually a risk worth calculating imo. The rational person in me would like to think that as a shareholder himself Elon wouldn’t do anything that lowers the stock price (especially since i think he used it as collateral for his twitter purchase), but with him i wouldn’t rule anything out. That said, if we go down that line of thinking, then we need to assign him no value in question 1.
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How high are the chances that we spend a ton of money fighting to not pay $56B and then have to pay anyways, having wasted a lot of time, additional money and goodwil? Considering a judge just ruled it excessive, i’d take my chances on that one.
I have a quick read of the executive compensation in the latest filings and according to the independent board members who make up the compensation committee Tecoking of Tesla and CEO ( no seriously that is his title in the listing) has achieved all the Revenue and Adjusted EBITDA milestones for the 2018 package and should be awarded the 303 million shares at $23 a share.
He also does the executive bullshit thing of not drawing a regular salary from the company so his only pay is stocks.
I agree that there are other staff who are far more deserving of those stock options
Elon likely doesn’t care too much about his Tesla stock, much of that was used in the Twitter purchase - and Twitter is going to die because the purchase saddled it with $13bn of debt, with the company being worth less than that now.
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This is the best summary I could come up with:
Tesla is asking shareholders to approve a move to Texas and to re-approve a $55.8 billion pay package for CEO Elon Musk that was recently voided by a Delaware judge.
Musk’s 2018 pay package was voided in a ruling by Delaware Court of Chancery Judge Kathaleen McCormick, who found that the deal was unfair to shareholders.
“Because the Delaware Court second-guessed your decision, Elon has not been paid for any of his work for Tesla for the past six years that has helped to generate significant growth and stockholder value,” the letter said.
McCormick determined that the proxy statement given to investors for the 2018 vote “inaccurately described key directors as independent and misleadingly omitted details about the process.”
McCormick also wrote that Denholm had a “lackadaisical approach to her oversight obligations” and that she “derived the vast majority of her wealth from her compensation as a Tesla director.”
The ruling in favor of lead plaintiff and Tesla shareholder Richard Tornetta rescinded Musk’s pay package in order to “restore the parties to the position they occupied before the challenged transaction.”
The original article contains 528 words, the summary contains 180 words. Saved 66%. I’m a bot and I’m open source!
