It's good to be king.
Posted on 01/30/2024 6:56:29 PM PST by yesthatjallen
A Delaware judge tossed out Elon Musk's record-breaking $56 billion Tesla (TSLA.O), opens new tab pay package on Tuesday, calling the compensation granted by the EV maker's board "an unfathomable sum" that was unfair to shareholders.
Shares of Tesla dropped about 3% in extended trade, and some investors seized on the ruling in hopes it might prompt Tesla to overhaul its governance.
The Tesla board has been criticized as failing to provide oversight of its combative, headline-making CEO, who has fought regulators and led several other companies at the same time.
The ruling, which can be appealed, nullifies the largest pay package in corporate America. The judge found the share-based compensation was negotiated by directors who appeared beholden to Musk, currently ranked by Forbes magazine as the world's richest person.
"Swept up by the rhetoric of 'all upside,' or perhaps starry eyed by Musk’s superstar appeal, the board never asked the $55.8 billion question: Was the plan even necessary for Tesla to retain Musk and achieve its goals?" wrote Kathaleen McCormick of Delaware's Court of Chancery.
SNIP
(Excerpt) Read more at reuters.com ...
As I said on an earlier thread:
Let’s see ... Elon Musk — one of the foremost visionaries and businessmen the world has ever known — has his $55 billion pay package struck down by a backwater judge, while E. Jean Carroll makes $83 million sitting on her butt claiming Donald Trump said bad things about her.
It's good to be king.
So hire a CEO from GM and let them run it in the ground.
So maybe we will see Musk pull out of Tesla. I thought he just recently said he needed a certain stake to want to stay.
I would be surprised that Tesla could do well with what appears to be coming, and Musk is spread kinda thin.
No, Tesla will do just fine with anyone else in charge.
"Never incorporate your company in the state of Delaware," Musk said in a post on X, the social media platform he bought in 2022.
” I thought he just recently said he needed a certain stake to want to stay.”
He did not say he would pull out. He said he needed a 25% share to have a major input on operation.
Blackstone CEO Stephen Schwarzman earned $253 million in 2023. CEO of Alphabet Sundar Pachai earned $225 million in 2003. CEO of Hertz Steven Sherr earned $182 million, Barry McCarthy, CEO of Peloton earned $168 million. Michael Rapino CEO of Live Nation earned $139 million. At Oracle Safra Catz took home $138 million. Douglas Ingram at Sarepta Therapeutics $125 million, Pinterest CEO Bill Ready earned $123 million, CS Disco CEO Kiwi Camera earned $110 million, Tim Cook, CEO of Apple earned $99 million in 2023. Peter Zaffino of AIG earned $75.3 million.
Elon Musk didn’t even make the top ten list for US CEO compensation but some judge in Delaware can decide his pay is too high. Are we now a communist nation?
Ummm....Billion with a B.....
Don’t understand how that’s some jerkwad judge’s business, though.
The figures you provide are all million with an “M”
Musk was wanting $55 Billion with a “B”. Their salaries are all pocket change to Musk.
Meanwhile, the Harkles have registered all their commercial ventures in Delaware, haven’t they...
Gee, I wonder why...
what the heck does a Delaware judge have ANY say in what Tesla chooses to pay it’s CEO!?!?!!
Our judicial system is out of control! and just like Trump does ANYONE believe this would be happening to Musk if he was still a leftist?
The fact that tax payers are paying to buy people Tesla’s means to me that Tesla is not truly a private company.
Elon Musk said something on X about this.
He said never incorporate a Company in Delaware.
“”Good day for the good guys,” said an email from Greg Varallo, an attorney for Tesla shareholder Richard Tornetta, who brought the lawsuit in 2018.”
A single shareholder brought this suit with THIS result?— only in Delaware Joey Bags Biden’s credit card paradise (as the Senator from MBNA/Capitol Bank, etc) Hence Musk’s comment to “never incorporate in Delaware” (Delaware’s appeal is starting to wear off— if it entertains a single shareholder and not a group). One wonders how many shares of Tesla this Tornetta guy owns.
If you disagree with the government narrative or balk at their authority then soon you will own nothing and who cares if you are happy.
“earned”
I should be living in Missouri.
“Our judicial system is out of control!”
Most corporations require the use of arbitration for workers and customers.
Musk’s lawyers should check the paperwork.
They were probably paying Musk to not start another company.
Corporations at one time favored New Jersey over New York.
When New Jersey changed the rules about a century ago, corporations legally crossed the Delaware.
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