Blaze876

iTrader: (1)

As someone already said, I stated net profit. Sure, it's in stock but when I saw that somewhere else it was a bit shocking. A business that has existed for 12-15 years and the CEO wants to be paid more than the company has ever made since it's existence.

It may just be me but I find that ridiculous.

SW17LS

It shouldn’t be just you who feels that way at all lol

It’s an insane thing.

bitkahuna

iTrader: (20)

the CEO was given an incentive plan to meet a hugely ambitious goal and it was met. it's not that complicated.

at least tesla HAS earnings unlike rivian, lucid, fisker, ...

Margate330

I'm not sure how it all works and the fine print.

But if a deal was made and he fulfilled his obligation, I say pay the man! ​​​

SW17LS

What you miss is that he was given an incentive plan from a board of people that were beholden to him, not an independent board that serves the shareholders as required by the SEC. Thats at the core of this issue, is the board's independence from Musk.

On top of that the company is now facing uncertain economic times and is enduring massive layoffs and drops in stock price, and giving him that comp package would not be in the financial interest of the company. The board is supposed to make decisions independently in the best interests of the company, not be picked by one person and make decisions that he wants them to make.

Want an example of this? Tesla doesn't buy ads. They are buying ads now...why? To promote Elon's compensation package? He needs to be removed from Tesla, he's treating it like his own entity and its a publicly traded company, there are rules of conduct here that he flouts all over the place.

SW17LS

Like I said above, the reason the plan was blocked was because the deal was not made legally in the first place.

swajames

the CEO wasn’t given a plan. The CEO and Tesla’s board, who are supposedly independent and who are obligated to act in the best interests of the company and its shareholders, concocted a plan and then misled shareholders about key details. In other words, this was Musk’s plan getting rubber stamped by a weak board failing to fulfill its fiduciary responsibility.

this isn’t just my take on it, it’s broadly the findings of competent and experienced judge.

Margate330

If that's true, it sounds rigged.

swajames

It’s accurate, Margate, that’s exactly what happened. The judgement is online, you can read it for yourself.

And the board re-filing the plan just a couple of days after announcing massive job cuts, because Tesla needs to cut costs, just adds to the tone deafness.

Bob04

Funny how nobody complained until AFTER he took no pay for years and met the crazy goals of the plan. He deserves every penny.

swajames

People absolutely complained.

And the complaint that led to the decision to void the package was filed a long time before it was heard and decided.

Bob04

No, he met the goals in early 2023. This case started April 25, 2023. Same judge that consistently ruled against him in the twitter case.

AMIRZA786

It is the biggest CEO compensation package in history for sure, does he deserve it or not is another discussion, but you have to look at it in context. It's based on number of shares and their value in 2018. It was based on certain goals being met, which by all measurements, he met. At the time nobody knew TSLA would grow by 400 percent.

I look at Elon in two lights, pre Twitter Elon and post Twitter Elon. The erratic behavior has always been there, but he paid full attention to Tesla before Twitter came into the picture. This is not just from my observations or stuff I've read, but from two former employees who worked with Elon who now work at my company and worked closely with him. As far as I can tell, Post pre Twitter Elon met the goals stated by the offered package. Post Twitter Elon, no comment

swajames

You think cases start the minute they're filed? Richard Tornetta filed the suit that led to the dismissal in 2018.

Bob04

Yeah, amazing how it was picked up and ruled on so quickly, right after he met all the goals. From a guy that had 9 shares, despite 80% of shareholders voting for it.

What a coincidence. I'm sure Elon leaving the Matrix had nothing do with a ruling from a judge in Delaware.