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The board prepared the package and shareholders voted on it. Most of the targets were hit. Then an activist investor sued claiming that the board is beholden to
by nateglims 2y ago
The board prepared the package and shareholders voted on it. Most of the targets were hit. Then an activist investor sued claiming that the board is beholden to musk and did not disclose that. The court agreed. Before a plan to vote on moving to Texas, the deal is now up for vote again with the court ruling attached.The stock price is also now below some of the targets previously achieved.
If you are a shrewd investor, you have to balance the impact of the options on your assets vs the signal you send to not just musk but any future CEO. But realistically, shareholders probably don't believe news that Tesla is going under, know that he rarely hits his goals for getting to market, and probably liked musk's leadership when the stock price rose.
- croes 2y agoSeems more like Musk prepared the package and exaggerated how ambitious the target are.
- refurb 2y agoLOL, how do you "exaggerate" a 20x increase in share price? The creation of $500B in company value? "God dammit Elon, you never told us how easy it was to take a near-bankrupt company and turn it into a $650B enterprise!"
- croes 2y agoAsk the judge, her verdict is >the Grant’s performance conditions were not, in fact, ambitious and difficult to achieve.
- refurb 2y agoIt’s a weird read. On one hand the judge admits the company was teetering on insolvency, and one of the most shorted stocks, then turns around and says generating $600B in company value was “not ambitious or hard to achieve”. She also questions whether Elon was really necessary to the performance of the company.