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The truly staggering thing about this "deal", IMHO, is that people were crazy enough to vote for it. Sure, you can argue a CEO deserves to be compensated for hi

The truly staggering thing about this "deal", IMHO, is that people were crazy enough to vote for it. Sure, you can argue a CEO deserves to be compensated for his work, but there has to be a limit on publicly owned companies. Various people have talked about the magnitude of the proposed payout, what's usually overlooked is that the figure was about 10% of Tesla's market cap. Effectively, Musk was trying to instigate a 10% tax on everybody's ownership of the company. Not 10% of profits, not even 10% of revenue, but 10% of everything including illiquid assets. That's just for one year's compensation, presumably he also expected similar going forward too. I cannot understand why any shareholder would vote for this devaluation of an asset. Not only did I vote against it, as soon as the vote passed and it'd somehow got a majority, I sold off all my directly owned shares. Sadly, I also own a lot indirectly through ETFs by virtue of TSLA being in S&P 500.

dfhvneoieno 2y ago
I agree with everything else, but.. > Sadly, I also own a lot indirectly through ETFs by virtue of TSLA being in S&P 500. this bit strikes me as a mistake. I did the calculations recently for this, actually, and even if you assumed that TSLA went to zero (which it won't; it's overvalued but its value isn't zero) the loss on S&P would be extremely small (don't remember actual numbers, but the calculation is easy to reproduce).
- ralferoo 2y ago
  Sure, TSLA is 1.39% of the ETF I invest in. On the one hand, that's a low percentage, but on the other hand because I've investing in an S&P ETF for so long, it's significantly more than I'd like for a company run by a CEO I don't trust! Oh, and just to be clear, I'm not considering the case of TSLA going to 0. Arguably TSLA dropping by 10% isn't significant in the grand scheme of things as it regularly fluctuates by that much in a day anyway, but I'd still rather have less exposure to that than more.
username332211 2y ago
What's even crazier is that the award was basically 100% of the market capitalization of the company in 2018, when the deal was originally approved.
twic 2y ago
Companies like Tesla are why i'm increasingly interested in ETFs tracking alternatively weighted indexes like RAFI: https://www.rafi.com/index-strategies/rafi-fundamental-indices https://www.rafi.com/index-strategies/rafi-fundamental-indic...
IncreasePosts 2y ago
> I cannot understand why any shareholder would vote for this devaluation of an asset A lot of people made a ton of money on TSLA, and they think it is largely due to Elon. Not because of his engineering prowess or whatever, but just because it became a memestock with his help.
Joker_vD 2y ago
> I cannot understand why any shareholder would vote for this devaluation of an asset. This is why we have a kind government, whose most eminent and enlightened courts of justice would step in and save people from their own bad decisions. After all, even the TSLA shareholders are still human beings and should enjoy the protection of the law, just like any other more valuable citizens would.

dfhvneoieno 2y ago

I agree with everything else, but.. > Sadly, I also own a lot indirectly through ETFs by virtue of TSLA being in S&P 500. this bit strikes me as a mistake. I did the calculations recently for this, actually, and even if you assumed that TSLA went to zero (which it won't; it's overvalued but its value isn't zero) the loss on S&P would be extremely small (don't remember actual numbers, but the calculation is easy to reproduce).

ralferoo 2y ago
Sure, TSLA is 1.39% of the ETF I invest in. On the one hand, that's a low percentage, but on the other hand because I've investing in an S&P ETF for so long, it's significantly more than I'd like for a company run by a CEO I don't trust! Oh, and just to be clear, I'm not considering the case of TSLA going to 0. Arguably TSLA dropping by 10% isn't significant in the grand scheme of things as it regularly fluctuates by that much in a day anyway, but I'd still rather have less exposure to that than more.

username332211 2y ago

What's even crazier is that the award was basically 100% of the market capitalization of the company in 2018, when the deal was originally approved.

twic 2y ago

Companies like Tesla are why i'm increasingly interested in ETFs tracking alternatively weighted indexes like RAFI: https://www.rafi.com/index-strategies/rafi-fundamental-indices https://www.rafi.com/index-strategies/rafi-fundamental-indic...

IncreasePosts 2y ago

> I cannot understand why any shareholder would vote for this devaluation of an asset A lot of people made a ton of money on TSLA, and they think it is largely due to Elon. Not because of his engineering prowess or whatever, but just because it became a memestock with his help.

Joker_vD 2y ago

> I cannot understand why any shareholder would vote for this devaluation of an asset. This is why we have a kind government, whose most eminent and enlightened courts of justice would step in and save people from their own bad decisions. After all, even the TSLA shareholders are still human beings and should enjoy the protection of the law, just like any other more valuable citizens would.