4 ms·

This deal is strictly worse than the one he refused. Fines doubled from 10M to 20M, chairman ban increased from two years to three, new communication review pro

by bjl 8y ago

This deal is strictly worse than the one he refused. Fines doubled from 10M to 20M, chairman ban increased from two years to three, new communication review process (not in the original deal), and they still have to install two new board members.

thinkcontext 8y ago
Are you joking? A 10m fine vs 20m is totally immaterial to a billionaire. 3 years is longer than 2 but it's clear giving up CEO was unacceptable to him.
- bjl 8y ago
  You speculated that this deal was more to his liking than the previous one. I was just pointing out how absurd that statement was given that this deal is worse than the other one in every respect.
  - FartyMcFarter 8y ago
    > this deal is worse than the other one in every respect. Is it? I thought the other settlement included Musk not being able to lead companies for two years: https://www.marketwatch.com/story/elon-musk-rolling-the-dice-and-buying-time-by-turning-down-sec-settlement-2018-09-28 https://www.marketwatch.com/story/elon-musk-rolling-the-dice...
    - kentm 8y ago
      According to https://www.nytimes.com/2018/09/28/business/elon-musk-tesla-sec-deal.html https://www.nytimes.com/2018/09/28/business/elon-musk-tesla-... the original terms were The plan, as it was negotiated by lawyers, was for Mr. Musk to step down as chairman of Tesla within 45 days and not resume that post for two years. The company, also a party to the proposed agreement, would add two new directors to its board. Mr. Musk and the company would pay tens of millions of dollars in fines, according to the people, who requested anonymity because they were not authorized to speak publicly. In other words, it’s the exact same deal presented before with some of the penalties increased. There’s no other way to explain it than Musk rejected the real and then realized he messed up when the SEC started with the lawsuit.
- cjhopman 8y ago
  But giving up CEO wasn't part of the original deal he turned down. This one is strictly worse.
- Agathos 8y ago
  You may be confusing the original rejected settlement (no CEO ban) with the complaint that the SEC filed on Thursday (yes CEO ban). The latter is more painful than the settlement offer. It has to be, or there's no incentive to settle.

by bjl 8y ago

thinkcontext 8y ago

Are you joking? A 10m fine vs 20m is totally immaterial to a billionaire. 3 years is longer than 2 but it's clear giving up CEO was unacceptable to him.

bjl 8y ago
You speculated that this deal was more to his liking than the previous one. I was just pointing out how absurd that statement was given that this deal is worse than the other one in every respect.
- FartyMcFarter 8y ago
  > this deal is worse than the other one in every respect. Is it? I thought the other settlement included Musk not being able to lead companies for two years: https://www.marketwatch.com/story/elon-musk-rolling-the-dice-and-buying-time-by-turning-down-sec-settlement-2018-09-28 https://www.marketwatch.com/story/elon-musk-rolling-the-dice...
  - kentm 8y ago
    According to https://www.nytimes.com/2018/09/28/business/elon-musk-tesla-sec-deal.html https://www.nytimes.com/2018/09/28/business/elon-musk-tesla-... the original terms were The plan, as it was negotiated by lawyers, was for Mr. Musk to step down as chairman of Tesla within 45 days and not resume that post for two years. The company, also a party to the proposed agreement, would add two new directors to its board. Mr. Musk and the company would pay tens of millions of dollars in fines, according to the people, who requested anonymity because they were not authorized to speak publicly. In other words, it’s the exact same deal presented before with some of the penalties increased. There’s no other way to explain it than Musk rejected the real and then realized he messed up when the SEC started with the lawsuit.
cjhopman 8y ago
But giving up CEO wasn't part of the original deal he turned down. This one is strictly worse.
Agathos 8y ago
You may be confusing the original rejected settlement (no CEO ban) with the complaint that the SEC filed on Thursday (yes CEO ban). The latter is more painful than the settlement offer. It has to be, or there's no incentive to settle.