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 ...
“Are we now a communist nation?”
We have a mixture of crony capitalists in big business and vote buyers in big government.
When you have as much money as Elizabeth Warren, the Clintons, the Obamas and Joe Biden, talking about equality is dangerous.
“From each according his ability” -> own’s own kin, like Chelsea, perhaps
WIKI
Its primary products are based on Morpholino oligomers (PMOs), synthetic nucleic acid analogs that were conceived of by James Summerton and invented by Summerton with Dwight Weller, originally developed under the name NeuGene Antisense. Since morpholino oligomers can form sequence-specific double-stranded complexes with RNA they are suitable use in antisense therapy. In one application, translation blocking, a morpholino oligomer binds to messenger RNA produced by a known disease-causing gene to prevent it from being translated into protein. Morpholinos can also work as splice-switching oligos, targeting pre-mRNA to alter splicing and so causing changes in the structure of the mature mRNA (the mechanism of the approved drug eteplirsen). Morpholinos have been tested for a wide range of applications including prevention of cardiac restenosis after angioplasty, treatment of coronary artery bypass grafts, treatment of polycystic kidney disease, redirection of drug metabolism, treatment of some mutations causing Duchenne muscular dystrophy (DMD), and inhibition of infectious diseases. Their greatest clinical and commercial success thus far has been in the treatment of DMD. A new class of Morpholino oligos, the peptide-linked Morpholinos or PPMO, are linked to an arginine-rich cell-penetrating peptide to enhance their delivery into cells and have entered clinical trials
The Morpholino drug eteplirsen, targeting exon 51 of the dystrophin mRNA, was approved as a human therapeutic by the FDA in 2016 and antisense oligonucleotides for Morpholinos targeting other exons are also subsequently approved. Morpholinos have been used in preclinical studies to inhibit replication of a broad range of viruses, including influenza, West Nile virus, SARS, hepatitis C, dengue fever, Ebola and Calicivirus, all of which are single stranded RNA viruses. They are in advanced development for prevention and treatment of Ebola and Marburg viruses.
https://en.wikipedia.org/wiki/Sarepta_Therapeutics
“Don’t understand how that’s some jerkwad judge’s business, though.”
Fiduciary duty to shareholders I suspect. If you owed stock in Chinese companies, you’d soon learn the importance of that.
Since when did a judge get to decide how much you can earn?
Tesla could change the location of its incorporation.
Richard Tornetta owns 9 shares of Tesla.
Elon Musk has many kids to support from many girlfriends.
People, people ...it’s a stock options pay package. The point of which is to retain governance of the company. I don’t think he’s cashing it out.
Equating that to pay is like saying a business owner’s pay is the total value of the company.
It’s just unfounded hysterical projection -which is the norm of journalism today.
“Delaware judge”
Doesn't Kathaleen McCormick of Delaware's Court of Chancery pick up extra cash on the weekend, part-time at the county dog catcher's?
Corporations?
Well, I have not studied the history of Corporate legal rules.
Some Corporations now are larger than most nation states. They seem to think they were chosen to rule the world with a Corporate Cabal.
The left hates Capitalism, and they are in combination with many Multi National Corporations.
Too big to fail? There is not such thing.
Communism, Fascism, Marxism, Socialism, and the other lies; always fail.
So will the Globalist Cabal and our internal “Intelligence” (oxy moron) agencies. Will be the 2nd Tower of Babel.
I don’t hunt much now, but I know how. And have what I need to allow me to do that.
Bear in Mind, Texas deciding to stop the invasion from the South, showed how other states agree. If Texas were to split, 1/2+ of US would follow (not long ago I thought it would be 1/3-1/2). That is not a good approach or outcome. I want it all back and the Globalist Traitors and their foreign allies in prison.
Big wish list? Yep.
I’m thinking very local right now.
“So hire a CEO from GM and let them run it in the ground.”
Yep.
How much of Tesla is actually owned by Elon Musk?
In general terms, a contract is a contract. Until government is involved and they make up the rules as they go along.
MD, NJ and Delaware are tiny corrupt states bogged down in regulation and exist to draw capital into the state. But they don’t understand that Corporations must make money to survive. Socialism Kills. Corporations included.
Do you think Musk’s statement was made in reference to this decision? Is the $56B the 25% he was mentioning? And is a reduction in involvement stepping down as CEO?
A lot of questions, I know, but you may be in the know.
Thanks.
“unfair to shareholders”
The shareholders can fire Musk if they want to. They’re his boss.
Musk has been looking for an exit from Tesla, and this is it. He knew the salary would be challenged and probably set aside.
That’s where Tesla chose to incorporate. It’s the default jurisdiction for most major US corporations.
>No, Tesla will do just fine with anyone else in charge.<
It may run for a while, but if Musk sells all of his shares, the stock will tank and make borrowing hard for the company.
Many a good company has experienced this death spiral. With the increasing competition from China and Vietnam, plus the public’s loss of interest in high priced EVs, Tesla’s days may be numbered.
How long will it take before some online dirt on this judge comes to light?
EC
Musk is an elite oligarch whose company was propped up by fed money for years.
That fact that his politics might align with yours doesn’t alter that.
His buddies on the board signed off on his get-rich-quick compensation package with zero analysis or bona fide negotiation. And I’m an investor who did very well with the stock, so that’s not sour grapes on my part.
“A lot of questions, I know, but you may be in the know”
The $56b would put him right at 25% but I don’t know how the distribution when and how it would be made.
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