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You’re getting it wrong. Him getting the options was contingent on making the shareholders a lot more money. The stock options were contingent upon dramatically

You’re getting it wrong. Him getting the options was contingent on making the shareholders a lot more money. The stock options were contingent upon dramatically increasing the value of the shares (despite the total number of shares increasing). There was no scenario in which the shareholders could lose money from the comp package. Even in the case where the company didn’t grow, they wouldn’t since he’d have gotten no compensation at all.

josefx 3y ago
> There was no scenario in which the shareholders could lose money from the comp package. Even in the case where the company didn’t grow If I understand other comments correctly then one problem was that the growth was predicted before Musk and friends wrote up the comp package. So money that was supposed to go to the shareholders was redirected into Musks pockets.
- s1artibartfast 3y ago
  >If I understand other comments correctly then one problem was that the growth was predicted before Musk and friends wrote up the comp package. not at all. the growth was not predicted, and most thought the deal was crazy (CEOs make deals that are never achieved all the time). One argument was that the deal wasnt fair because Elon wouldnt work harder for an extra 50 billion, because he already stood to make 100 billion if he hit the milestones. Like any company, any money that isn't spent on compensation belongs to the shareholders.
  - gpm 3y ago
    The growth was absolutely predicted as to the first tranches, to quote the ruling > Tesla determined that three operational milestones were “considered probable of achievement,” which meant that they were greater than 70% probable of achievement within approximately one year of the Grant date > [...] > Defendants failed to prove the factual predicate for their argument that all the milestones were “ambitious” and difficult to achieve.
    - s1artibartfast 3y ago
      that's a fair clarification. I was trying to address the idea that all of the milestones were predicted, which I have seen a few times in the thread.

josefx 3y ago

> There was no scenario in which the shareholders could lose money from the comp package. Even in the case where the company didn’t grow If I understand other comments correctly then one problem was that the growth was predicted before Musk and friends wrote up the comp package. So money that was supposed to go to the shareholders was redirected into Musks pockets.

s1artibartfast 3y ago
>If I understand other comments correctly then one problem was that the growth was predicted before Musk and friends wrote up the comp package. not at all. the growth was not predicted, and most thought the deal was crazy (CEOs make deals that are never achieved all the time). One argument was that the deal wasnt fair because Elon wouldnt work harder for an extra 50 billion, because he already stood to make 100 billion if he hit the milestones. Like any company, any money that isn't spent on compensation belongs to the shareholders.
- gpm 3y ago
  The growth was absolutely predicted as to the first tranches, to quote the ruling > Tesla determined that three operational milestones were “considered probable of achievement,” which meant that they were greater than 70% probable of achievement within approximately one year of the Grant date > [...] > Defendants failed to prove the factual predicate for their argument that all the milestones were “ambitious” and difficult to achieve.
  - s1artibartfast 3y ago
    that's a fair clarification. I was trying to address the idea that all of the milestones were predicted, which I have seen a few times in the thread.