AMIRZA786

He'll get a compensation package, it's just the matter of how much the board approves. You would have to opt out to not get paid.

No way Elon Musk is leaving Tesla anytime soon. I'd bet all my TSLA holding on it

LeX2K

Board did approve it was taken away. Board has to approve a new comp package but only if Tesla is no longer incorporated in Delaware. That could take a long time or even be blocked by the state of Delaware.
What does this mean? Since 2018 Elon got paid $0 as CEO of Tesla.
I think the chance is higher than "no way".

AMIRZA786

That means he has opted out of getting a salary, and his compensation is based solely on stock grants. Many CEO's take this path including my companies.

That compensation package is moot as it was blocked by the court. I'm sure they will offer him a revised package.

I stand by my statement that he's not leaving Tesla anytime soon unless they fire him, which is more unlikely than him leaving Tesla on his own. Don't ask me to prove it please, it's just a gut feeling

LeX2K

Many? I have doubts at least for for the big cap companies I don't know of any. They are all taking a fat salary and will walk away wealthy no matter how their company performs.
As I said not in Delaware the nut job court system will nullify that too.
I would never ask you to prove the unprovable.

AMIRZA786

Our CEO's salary is $0, he has over a 1000,000 shares. Today they closed around $3.71, but imagine when they hit $30, which is completely possible the way things are heading right now. No salary can match that, unless the company tanks and our shares drop to $0.

Elon Musk is not leaving Tesla, and that's that

swajames

Delaware chancery courts are absolutely not nut job. They are one of the main reasons that the majority of large companies choose to incorporate there. Delaware chancery courts are commercial, reasonable and predictable, and cases are generally decided by commercially competent judges, not juries. These are all things most large companies find valuable. If you’re blaming the court rather than the complicit Tesla board and the lack of proportionality in the compensation award itself then you’re not looking at the issue through a reasonable lens and you probably have no real idea what you’re talking about. The majority of large companies aren’t wrong. On any reasonable analysis, the compensation package offered to Musk was out of line with those offered to any reasonable peers, many of whom delivered demonstrably better results and performance than he did. The primary difference is they did not have the weak governance and minimal actual oversight that the Tesla board exercises over him. And before anyone brings it up, the shareholder who sued had standing, and had that case not been taken another probably would have and the result would have probably been the same.

LeX2K

Tesla board and shareholders (for example me) voted for the comp package it doesn't make a lick of difference what any judge thinks of it. Nothing was illegal or even close. The judge started her ruling buy saying, is Elon Musk too rich? Blatant prejudice right from the start. This was a decision based on what we are not allowed to talk about it and you know it.

Let me guess, you are delighted that the lawyers will be getting $5 BILLION for handling the case. Because Delaware is such a fair place to do business.

You actually think a person with 9 shares should have the power to overrule millions of shareholders and the BOD. You just earned a spot on my ignore list.

AMIRZA786

Just to clarify, they are not "doing business in Delaware". They are only incorporated in Delaware. The company I work for is also a Delaware corporation, but we are doing business in California. Most companies incorporate in Delaware for tax purposes

LeX2K

You know what I meant it doesn't change the substance.

AMIRZA786

The thing is, I don't think the board is going to want to incorporate in any other state because Delaware corporations are the the most favorable when it comes to taxes, privacy and courts, because they don't use the traditional legal system. It's why most companies incorporate there

LeX2K

Then you should sell all your Tesla shares while you still can. Delaware kangaroo courts are not going to allow any comp package for Elon Musk that benefits Tesla. They've proven that beyond all doubt.

AMIRZA786

I'm not worried about Delaware Kangaroo courts, Elon will be just fine. He'll get a giant compensation package and still be among the richest men in the world. Maybe he and Jeff Bezos will trade off back and forth 🤣

swajames

The lawyers haven’t been paid $5 billion and they won’t get anywhere near $5billion or even a small fraction of that as that would itself be equally unreasonable, so no, I don’t agree with. And yes, when the BOD fails to do its job as it demonstrably did here then I consider it entirely reasonable that the courts do it for them. One of the key points of the suit was that Tesla shareholders were misled and again I have no problem with the courts correcting that either.

And as to what the judge said, for someone so apparently invested in this you (quite amusingly) clearly haven’t actually read it. Not even the opening paragraph that the reports you must have read instead had paraphrased in that way. Because the judge opened with a different question and noted that it was the question that the plaintiff was asking as a precursor to their key question which was whether or not Musk controlled Tesla and had effectively decided his own pay.

I suspect most here now find it as odd as I do that it’s become clear through your posts that you have neither read nor really understood the matter you continue to be so upset about.

LeX2K

What makes you trust Delaware at this point?

AMIRZA786

It's not about trusting Delaware. I only gave reasons why companies incorporate there, because of tax benefits, which is the reason Tesla incorporated there in the first place, the same reasons as almost every Silicon Valley company has.

I can't speak on anything else including the lawsuit or the size of the compensation package, I'm no expert in this and I would only be offering my opinion. The only thing I'm sure of is Elon will get his compensation package. It may not be the amount he wants, but I can say with full surety that he will remain one of the wealthiest human beings in the world