What Elon Musk Could Lose After His Big $50 Billion Pay Deal Is Blocked. An unusual pay package that Tesla devised in 2018 helped make Musk the world’s wealthiest individual. But a judge’s ruling that the arrangement was unfair to other Tesla shareholders raises questions about much more.
by mafco
4 comments
Tesla is as much a cult of personality as it is a company. If he doesn’t get the pay deal and pulls back or is perceived to stop focusing on Tesla.. I would imagine the stock he already owns will drop quite a lot. But who knows… Elon Musk has built Tesla’s image to be as much about him as it is about the company… hard to see how that works without him, and its hard to seem him not throwing a temper tantrum about it. That being said – I think he had a contract that stock holders knew about and they still invested – I don’t see why he shouldn’t get it even if I don’t like him… The way he handles himself over the coming weeks is going to be interesting to say the least, but I’d put my money on erratic behaviour/tweets and self sabotage.
Elon Musk did not become a billionaire because he’s smart. He became a billionaire by being corrupt, dishonest, abusive, egotistical and had rich parents. He aspires to be like the donald, ex president of the US of A. Aspiring god for life.
I actually read some of the judges opinion and I have to say that according to the law, she probably made the right ruling.
The plaintiff basically argued that the board was compromised and not acting on behalf of the shareholders.
And from the testimony of the board it sounds like its basically true. The board was completely made up of musks friends. There were zero counter offers, no pushback at all. They were all very honest about the whole thing it sounds like. Musk basically initiated the deal and they went along with whatever he said.
The board members were arguing that because musks bonuses were tied to stock price, stock holders were going to benefit. But the judge was saying that musk wealth was largely tied to tesla anyways and there’s was no reason to think they needed such a large package to retain him. You have to remember that back when this deal was made musk already had like 20 something percent of tesla. He was going to want tesla to succeed regardless.
Long story short, the board was completely compromised and they gave no counter offers, they questioned nothing. Some of them had been musks friends for decades. That was the heart of the matter.
He’ll be fine.