4 ms·

Seems silly, if their equity goes up in value should they have to return everything over 1m? It's not their fault that people bought the stock and made them ri

by kneel 3y ago

Seems silly, if their equity goes up in value should they have to return everything over 1m? It's not their fault that people bought the stock and made them rich.

pjanoman 3y ago
They're returning the equivalent of 3 million stock options. They gave themselves 11 million stock options between 2017-2020, which means they're still getting around $2 billion for being on the board. They're not returning everything over $1 million at all. https://www.reuters.com/legal/tesla-directors-settle-lawsuit-over-compensation-735-mln-2023-07-17/ https://www.reuters.com/legal/tesla-directors-settle-lawsuit... Do you have an opinion on whether the work they've done is worth $2 billion?
- kneel 3y ago
  >Do you have an opinion on whether the work they've done is worth $2 billion? Their market cap went up by 1 trillion. Again, they were just compensated in equity. It's easy to look back and criticize them as overcompensated but at the time they were just receiving equity worth a fraction of what it is today.
  - woobar 3y ago
    At the time they were getting close to 10-20x more than an typical board member of an S&P 500 company. The lawsuit was brought up before the stock took off.
    - kneel 3y ago
      Detractors seem to have short memories. They were cash strapped and almost bankrupt, the most shorted company of all time and they paid out in equity. They were able to flip it around and become of the all time great success stories, I'd say their directors probably earned their compensation.
mikeryan 3y ago
Board members are generally large shareholders in the company and have fiduciary responsibility in their role. They shouldn’t need to be compensated on top of the stake they already have in the success of the company. It makes Teslas defense that it used the stock options to ensure the incentives of directors were aligned with the goals of investors. [1] kind of ridiculous. That’s literally their job and their fiduciary responsibility as a board member. I do have to note that a “fiduciary” has a distinct meaning here. 1. https://www.reuters.com/legal/tesla-directors-settle-lawsuit-over-compensation-735-mln-2023-07-17/ https://www.reuters.com/legal/tesla-directors-settle-lawsuit...

by kneel 3y ago

Seems silly, if their equity goes up in value should they have to return everything over 1m? It's not their fault that people bought the stock and made them rich.

pjanoman 3y ago

They're returning the equivalent of 3 million stock options. They gave themselves 11 million stock options between 2017-2020, which means they're still getting around $2 billion for being on the board. They're not returning everything over $1 million at all. https://www.reuters.com/legal/tesla-directors-settle-lawsuit-over-compensation-735-mln-2023-07-17/ https://www.reuters.com/legal/tesla-directors-settle-lawsuit... Do you have an opinion on whether the work they've done is worth $2 billion?

kneel 3y ago
>Do you have an opinion on whether the work they've done is worth $2 billion? Their market cap went up by 1 trillion. Again, they were just compensated in equity. It's easy to look back and criticize them as overcompensated but at the time they were just receiving equity worth a fraction of what it is today.
- woobar 3y ago
  At the time they were getting close to 10-20x more than an typical board member of an S&P 500 company. The lawsuit was brought up before the stock took off.
  - kneel 3y ago
    Detractors seem to have short memories. They were cash strapped and almost bankrupt, the most shorted company of all time and they paid out in equity. They were able to flip it around and become of the all time great success stories, I'd say their directors probably earned their compensation.

mikeryan 3y ago

Board members are generally large shareholders in the company and have fiduciary responsibility in their role. They shouldn’t need to be compensated on top of the stake they already have in the success of the company. It makes Teslas defense that it used the stock options to ensure the incentives of directors were aligned with the goals of investors. [1] kind of ridiculous. That’s literally their job and their fiduciary responsibility as a board member. I do have to note that a “fiduciary” has a distinct meaning here. 1. https://www.reuters.com/legal/tesla-directors-settle-lawsuit-over-compensation-735-mln-2023-07-17/ https://www.reuters.com/legal/tesla-directors-settle-lawsuit...