3 ms·
I've been seeing a lot of media coverage of this lately. The Tesla BOD voted on, and approved this compensation package in 2018. The package rewarded Musk for
by anonymousiam 2y ago
I've been seeing a lot of media coverage of this lately. The Tesla BOD voted on, and approved this compensation package in 2018. The package rewarded Musk for various milestones, and TSLA stock saw incredible gains over the period covered by the package. The result was a $56B incentive award to Musk, challenged by Richard Tornetta in Delaware. (Tornetta held just 9 shares of TSLA when he filed his lawsuit.) So the activist judge in Delaware nullified the contract and the result is that Musk gets no compensation for the incredible job he did for all TSLA investors. Musk has since re-incorporated Tesla in Texas, and he's now asking the BOD to pay him for his hard work. Is it "unfair" to TSLA shareholders to reward Musk for a job well done, or is it "unfair" to Musk to have his BOD-approved compensation package contract voided after the fact by an activist judge, as a result of a cheap shot lawsuit from a nobody shareholder?
Disclaimer: I earned over $100k trading TSLA stock last year, but at present I do not hold any shares.
- TheLoafOfBread 2y agoActivist judge is a wild term for pointing out that BoD are all friends and even family with Musk and thus hardly independent.
- Eddy_Viscosity2 2y agoThese shareholders are all free to mail Elon a cheque with any amount they want as bonus.