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Wasn't there a shareholder suite that alleged the directors aren't independent because of the above-standard Tesla options they receive? Robyn Denholm excecised
by sangnoir 2y ago
Wasn't there a shareholder suite that alleged the directors aren't independent because of the above-standard Tesla options they receive? Robyn Denholm excecised and sold $35M worth of TSLA in the past month.
- skissane 2y ago> Wasn't there a shareholder suite that alleged the directors aren't independent because of the above-standard Tesla options they receive? Has a court accepted that argument? I mean, you can come up with all sorts of grounds to claim an independent director isn’t really independent, but unless a court with jurisdiction accepts the argument, it doesn’t really count for anything.
- JumpCrisscross 2y ago> Has a court accepted that argument Yes, a Delaware court. It’s why Musk’s pay package is contested and why Tesla redomiciled.
- sangnoir 2y agoHN is a court of law: some things may fail to meet some legal test, but not that in no way means it automatically becomes subjectively "right". I am adding a datapoint on what's arguable and leaving the judgement of cogency to the reader. My previously-unstated opinion is: remunerating directors like executives blurs the distinction between those 2 roles in ways that are likely detrimental to long-term shareholders.
- pmorici 2y agoIf receiving stock based compensation is grounds for not being independent then wouldn't most companies have an independence issue with their boards? It just seems like a crazy claim on it's face.