Originally published at: https://boingboing.net/2024/01/31/judge-rejects-elon-musks-full-self-dealing-pay-package.html
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Please let this make him overleveraged.
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What is it with the proliferation of fake-macho man children who pout and whine like a toddler who’s been told he can’t get a toy from the store whenever something doesn’t go their way.
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I am mostly ignorant about corporate financial crap and need some clarification. I thought the amount a corporation pays its officers is entirely up to the corp (hence the huge CEO salaries). Why is a judge able to rule on whether a pay package is fair? Did someone have to sue Musk first to send the matter to a court?
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I don’t think a pay package equal to more than half the revenue is the board fulfilling it’s fiduciary duty.
But yes, this was a shareholder lawsuit.
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Yes. One of the stockholders sued.
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And it had to be pretty egregious and nakedly crooked for Delaware court to stop a big corporation from doing what they want with the money.
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Yes, there was a shareholder who claimed the compensation was too high, and the board didn’t really debate it, and the board is comprised of Elon’s friends. Or maybe the last two points were part of the judges finding.
So should I ever desire my pet company give me an outlandish compensation package I either want it to be a privately held company or have at least one non-pet board member, and make sure “my” board has a substantial debate on record.
Or maybe I should have a better fantasy. Emperor of earth? Or maybe something more selfless, some sort of immense foundation for animals. Yeah, that sounds good.
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I would be delighted to see more suits of this kind be successful.
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There was a tax and wealth activist group in Ireland that did a report with a wonderful chart of the major companies in the country, their board memberships, and the members of their executive compensation boards.
Which made it really obvious why you would overpay someone: because he could return the favour and overpay you.
Greedpigs play a rigged game.
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Thank you. Came here to ask this.
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Judge rejects Elon Musk’s […] package
Did he forget to offer the horse?
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Hit the interwebs for as detailed of an explanation as you need, but for the most part this sums it up:
Attorneys for the shareholders who brought the suit had argued that the package of stock options was excessive and that the directors on Tesla’s board were not truly independent and were too close to Musk to protect shareholders’ interests.
They also argued that the financial targets the company had to hit for Musk to qualify for each of the 12 separate blocks, or “tranches,” of stock were not the “stretch performance goals” as the company told shareholders when seeking their approval of the package. Instead, they argued the milestones were essentially the same as the company’s internal growth projections that were being shared with banks and rating agencies.
https://edition.cnn.com/2024/01/30/investing/elon-musk-pay-package-thrown-out/index.html
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Elno didn’t incorporate Tesla; it was an existing company he poured a pile of money into.
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Oh well, at least he’s got that Twitter revenue to fall back on.
The irony is that they incorporated in Delaware because it allows corporations to get away with a lot more shit (hiding who owns/runs the company, not paying some taxes…). So yes, please, don’t incorporate there and see how much “better” things go for you.
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