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There's no place in the world where a $50B pay package is justified. He's just ransacking the other investors. The board (if it had any spine) should tell him t
by coliveira 2y ago
There's no place in the world where a $50B pay package is justified. He's just ransacking the other investors. The board (if it had any spine) should tell him to stop or go away.
- imbeciles77 2y agoThis is a perfectly ignorant post. CEO: I agree to the plan Shareholders: I agree to the plan Board: I agree to the plan Random judge: I don't! Disallowing adults of sane mind from coming to mutually beneficial agreements and a judge can just throw it out because they don't like the guy is like setting off a nuclear bomb in regards to the rule of law. Abuses of the legal system like this are why we can't have nice things, and this is only one example, see: medicine.
- dkjaudyeqooe 2y agoWell, your first sentence is certainly correct. The board compensation committee is supposed to be independent of the person they are deciding compensation for, and it manifestly was not. That was the basis for her ruling.
- adastra22 2y agoIt was a $0 pay package when it was granted, while the Tesla market cap was ~$50B. It's now worth $100B because Tesla's market cap is $1.2 trillion. That's how stock options work. It was a 12% allocation, in the form of stock option grants to the CEO that were gated on some extremely high performance metrics. He hit most (all?) of those metrics, and as a result Tesla is now among the most valuable companies in the world. Shareholders have gotten a 2800% return on their investment from 2018. In exchange for a 12% dilution in their shares. 12% in new options is on the high end for an executive pay package, but not unheard of. It is only because of the massive success of Tesla under his leadership that this is even an issue. Shareholders got a good deal.