Delaware's corporate shake-up: Billionaires take aim at the state
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- เผยแพร่เมื่อ 11 ก.พ. 2024
- Charles Elson, founding director of the Weinberg Center at University of Delaware, joins 'Squawk Box' to discuss Delaware's corporate shake-up, whether the state still has traditional dominance over public companies, and more.
1 investor with 9 Tesla shares got paid 10K by lawyers who will make billions to bring on this class action lawsuit. Totally bogus. This guy is a bozo.
I am a small investor of TSLA. I would just say Elon deserves every penny of his compensation. Without Elon Musk, not only there would be no TSLA, there would be no EV industry as we have today. Also, please move TLSA to TX.
He already moved the Tesla HQ from Cali to Texas back on Dec 2021.
@@DrMarkyMark when you decided to invest in TSLA, this is part of the deal. I don’t agree with everything he says or does, and I accept the fact that TSLA is volatile. I started my TSLA investment from under $20, believe or not, it was almost cut in half. Look at it now, 10x gain with a lot of house money and some. If you can take it, you shouldn’t be in it. I am going to hold the house money to $1000 or higher. If it goes lower, I will buy some more. I don’t care about what he says and does in between, I strongly believe that he is going to make TSLA BIGGER than MSFT or AAPL within 5 to 7 years.
@@DrMarkyMark when you decided to invest in TSLA, this is part of the deal. I don’t agree with everything he says or does, and I accept the fact that TSLA is volatile. I started my TSLA investment from under $20, believe or not, it was almost cut in half. Look at it now, 10x gain with a lot of house money and some. If you can take it, you shouldn’t be in it. I am going to hold the house money to $1000 or higher. If it goes lower, I will buy some more. I don’t care about what he says and does in between, I strongly believe that he is going to make TSLA BIGGER than MSFT or AAPL within 5 to 7 years.
@@DrMarkyMark I would say he did a great, not only for TSLA shareholders, but also for the EV industry, except for those who are trying to make quick money and fail. I wouldn’t want anyone else to be TSLA’s CEO and I think the board did a decent job tying his performance to the company’s performance, and he met every single matrix. 75% of investors voted for his package.
@@DrMarkyMark You mean he bought twitter and broke woke hearts by demanding freedom of speech??
Delaware did not protect investor interest. The judge made the wrong decision, and now all companies are doubting corporate rule in Delaware.
Explain the details of the case please. It seems as if you understand law more than this judge.
@@KK-pm7udshe's a business judge
She literally understands NOTHING
Let's be honest what the Delaware court is. It's a business court
@@TheMagicJIZZ Reading your screen name I see you're an expert in bird law.
The Court nullified 80% shareholder approval in the Tesla case because of someone who owned 'less than 100 shares in 2018'
Clearly the majority still approved of the compensation package. Requirements to reach it were gargantuan, and achieved.
If the courts can overrule the board and shareholders vote, then who really runs the company 🤔 Can't imagine why any company would locate there?
I really appreciate Delaware courts helping us sheep investors and shareholders from making our own decision
You should. Tesla shareholders were basically defrauded by Musk, and they couldn't avoid it.
@@960john You're right, he only 10x'd their money, what a huckster....
@@videomonster9778 It doesn't matter. He also diluted them worth of $55bln. Issuing shares for management without buying them back later isn't good for shareholders.
@@960john huh? The compensation package was publicly disclosed in 2018. Any investor that didn't like it was free to sell their stock at any time since then.
@@sumguy7716 it's still a dilution worth 55 bln. Why do you think Delaware stopped it if everything was ok?
Show me a shareholder that wouldn't agree to give 6% of the stock in exchange for $600 billion in market cap growth for any stock... it's insane that they blocked his deal
So halfway through the interview we find out he has a bias. Poor journalism and a lack of ethics on his part
He disclosed that he helped out with the case. What's unethical about that? He was being transparent. Are you saying that news shows should only interview people who are unbiased? Everybody is biased to some degree... you, me, and everyone else. To me, poor journalism is presenting opinions and misinformation as if they are facts, not because a journalist interviews a person with opinions you or I disagree with.
@@user-ll9qk2el4d The poor journalism as you put it reflects that he helped make the decision so he is only going to support the outcome that eventuated.
@@user-ll9qk2el4dYES. Of course. Because sentient people can consider the facts and decide. Exactly as shareholders did in 2018. Because.... Shareholders are also sentient!!! What we don't need is nanny state represented by this leatherback turtle of a man pontificating that we did not know what we voted for in 2018.
Musk 10x the company market cap since 2018 and over delivered on his targets. Everyone thought he couldn't do it (most thought Tesla would go bankrupt) and he put his pay and everything on the line to deliver. Now these idiots want to say Tesla would be better without him and that he's hurting investors. I guess creating the EV market and trying to get us to sustainable energy products along with ridiculous returns isn't good enough. Everyone's an expert from their perch looking back. All this FUD is great for those of us stacking shares. Once this blows over and they figure this out these people will come back later and complain how he takes this from $600 Billion to $4 Trillion. The lawyers need their slice and judges need to do the administrations bidding.
The professor wants Tesla to get rid of Musk, change the board and get new leadership.
I’m not sure who’s interest he has in mind.
He didn't say to get rid of Musk. He said that he is overpaid. He also suggested the company should change its board members, because they are not doing their duty to protect the shareholders. The purpose of the board is not to do whatever Musk wants but to guide him to do what is best for the company.
Same can be said about everyone who owns Tesla stock and supports Musk. Especially investment firms that own large amounts of Tesla stock.
Who's interest do they have in mind ?
@@user-ll9qk2el4dhe's paid nothing from 2010 lmao
He literally gets nothing unless he helps the shareholders
Demonrat
@@user-ll9qk2el4d Tesla is much more successful and valuable now than in 2018, when the shareholders approved Elon's compensation plan. This is the result of the actions of the management and the board. Who are you to tell the shareholders that the board should be replaced? This kind of arbitrary and capricious conduct is the reason Delaware will lose Tesla and probably many other companies that want to be controlled by the shareholders, not some random judge.
I thought this stock comp deal with musk was already voted on by the board 5 years ago “if” he performed his duties and hit certain metrics? Which he has, as I understand it, and now there is a motion to rescind his comp? Regardless of how much Delaware believes it’s excessive, it’s a deal in writing. Pay the man what he is owed.
Musk wanted $56 billion and recently an additional $70 billion+ (12% of the company). That's over $125 billion compensation for a CEO working part-time for a company only worth about $600 billion. That is insane! The CEO of Nvidia was paid an annual salary over $20 MILLION, not billion, for a company almost worth $2 Trillion, 3 times more valuable than Tesla. The whole case was based on the argument that the board members neglected their duties to protect shareholders. They gave Musk whatever he wanted, because they were either his friends, family member, and/or simply afraid of him. So what Musk met certain metrics? He also failed to meet other things he promised. Other CEOs also have to meet peformance expectations, but none demanded $125 billion in compensation. As a TSLA stockholder myself, I think the board needs to be dismantled and replaced with people who have the shareholders' and the company's best interests in mind. A good first step would be board members stop partying with Musk and taking drugs together as news reports alleged.
Maybe Musk should leave ? See what happens to your stock then
@@user-ll9qk2el4d The pay of Google CEO is 200 million. If Musk didn't hit those targets, his income was essentially $1 a year. Also excluding Elon and his brother, shareholders voted 73% in favor of that pay package. How were shareholders rewarded after the comp was approved? Tesla shares are up 10X. Musk is running laps around every CEO when it comes to performance outside of Nvidia. This being a shareholder who knew the details of the comp package because it was widely covered on TH-cam and happily approved it and benefited immensely by the stock and buying my first home in the crazy market that is LA.
@@user-ll9qk2el4d firstly, the compensation package wasn't worth $56 billion in 2018 when it was awarded. you don't get to use the post-milestone compensation amount and compare it to the pre-milestone market cap. that's spin shows that you are not objective about your evaluation. the split adjusted stock price in 2018 was between $18 and $23 per share. it closed today at $188 per share, close to a 10x increase in 6 years. to further that point, the stock closed at $381 in october of 2021, which is a 20x increase.
if you hate elon musk, just say so. arguing about the compensation package, which was predicated on metrics that are overwhelmingly positive for shareholders, just makes you an ankle biter. grow up. if you really are a TSLA stockholder, then what have you lost because of musk's compensation package?
@user-ll9qk2el4d it was a 5 year agreement all or nothing. He jumped through all the hoops, met all the requirements. There's no legal reason not to pay him. All the shareholders have been rewarded
This is clearly politically motivated and completely UNbalanced. This guy is delusional and doesn't understand performance pay.
All parties agreed on the compensation package, still do to this point. What this guy thinks or the judge thinks should have no value in the compensation package. This is a gift to the short sellers as that's the only reason for the lawsuit by a guy that owns 9 shares of Tesla. Even an idiot can see the corruption here.
Sorry, but that not true. Judges should have step in years ago when CEO give outrage pay package by their "yes men". The job of the board is to challenge the CEO not be part of cult of personality. It a first time in long time when someone was actually doing their job.
@@Madame702
But how much did Elon musk make for everyone in the board. Just be honest, is another better candidate than Elon to make reach all those milestones? If they don’t like Elon and would not pay him what he think he deserves, the. Why keep him?
@@kellyhou9594 Your government the US government was developed by the Founding Fathers, who's government a King would arrest people like you Kelly. Then imprison them with any chargers then execute them. King George III of England would made preventing you from having wage above a certain amount for fear you might get to rich and powerful. These called "Maximum Wage" laws. You had no "Civil Rights" your "rights" was whatever the King felt like giving you on any given day.
@@kellyhou9594 That's why our government was created to restrain the power of the central government. The US Bill of Rights "restricts" the power of the Federal government over the individual and we are a country of laws. Sometime call a bill of regulations or "negative rights" it should prevent worse of our government from tyranny. But it hasn't always worked human beings are cunning and deceitful.
@Madame702 what makes you think the board didn't do their job? The results going from $50B worth to over $600B isn't an indictment of their decision making? How the auto business adamant Tesla would fail or Elon required to obtain all the milestones to receive the compensation elso nothing. He worked for free for 7 years. GM CEO over the past 5 years received $200M in compensation yet the stock stays the same, are the board members from GM doing their job competently?
He seems to think that the ruling favored the investors. But the investors voted for the compensation package based on very high goals because they wanted to reach these goals. I'd say THAT is what favors the investors, and they are glad to pay due to the results they got. Considering that the agreement was years ago, any objection should have been brought up back then. You can't say "I will pay you shitloads of cash if you can make this basket" and then when he hits the basket, say "Nah, that's too much money"
RIP Delaware
GFY Delaware - as a shareholder I want Musk to get his due reward - just as I got mine in the stockprice.
Nearly 80% of Tesla shareholders approved Musk's 2018 Comp Package. The Delaware Chancery Court going against such an overwhelming shareholder action cannot go without response.
Move the corporation out of Delaware immediately. The shareholders will approve of the action.
I will
bye
Yes, they approved it in 2018, but they did not approve it. Now keep up man
Hmm, maybe “full disclosure” should come at the outset of an interview with what turns out to be a partisan advocate.
💯 why is he even here?
I've invested in TSLA since 2018.. I'm not a multi millionaire, but someone who saw his retirement grow by leaps and bounds thanks to Elon. I'll be siding with him if he asks to move the corporation to TX or NV.
United States of Soviets
Id like to see if this guy would be saying the same thing, if he got 56$ billion taken from him , which was approved in a contract 5 years ago that everyone agreed upon. This is absolutely absurd. This guy is a m-ron.
that is quite a stupid comment
@@Nnomadd that goes for you too.. I'd like to see if you'd be in agreement with this guy if you got 56 billion agreed upon contract taken from you.. Nobody believed elon would hit the numbers.. he put it all on the line.. all or nothing.. and then after he performs they don't pay him?? That's complete BS.
How greedy do you need to be ? Setting world records ?
@@Bradgilliswhammymanit's not pay it's shares
In the Tesla case, the management and 80 percent of the shareholders, including me, agreed on the compensation.
This decision went against both!
This guy is completely wrong. Every company should leave Delaware. Tesla is only Tesla because of Elon Musk. He negotiated a great compensation package that said IF he could defy all odds and achieve completely unachievable goals he would be handsomely rewarded. He achieved the unachievable and had the rug ripped out from under him by a single judge.
Musk produced a miracle and deserves every bit of that money. Voters approved the deal, possibly because they didn’t think he could do it.
It's funny - usually when I scroll through comments on a video about Elon Musk, there are a good mix of pro and con comments. But, with this case, the comments are overwhelmingly in favor of Musk. Especially from Tesla shareholders. Doesn't that tell you something?
Who is this 🤡?? I was a TSLA shareholder that got scalped by this ruling! It infuriated me. I STRONGLY support Tesla and others voting with their feet to a business friendly State. That ruling is UNJUST full stop. Since it's legal there's only one remedy, leave. That was a stupid, short sighted blunder by Delaware.
"10% for Big Guy's ".. hometown
The bottom line is everybody benefitted from the compensation package. Everybody. Nobody lost in any way. And the judge ignored the will of the majority of shareholders on behalf of one with nine shares. Even doubling down treating shareholders like little uninformed children who don't know about the board. This ruling is the worst corruption in the business world I have ever seen. Everybody should leave Delaware now. This biased judge who is on a crusade against Tesla single handedly destroyed the reputation of Delaware. Let that sink in.
I think Charles would struggle to aim
No actual harm occurred until the judge decided so. The board and shareholders justly rewarded observably outstanding performance, and a judge says they are all wrong. The judge has a personal problem and observable bias evidenced in the decision. Why did she not recuse herself?
With people like the one interviewed, Delaware is in trouble.
They put Tesla in an impossible situation, and refuse to see that!
when i incorporate my company aint no way its in Delaware. i don't think this fool realizes all of Sillcon valley from the vcs onward and starting with YC are now going to require no one register in this state
It's unjust that the attorneys filing this lawsuit stand to earn millions. Why should they receive such substantial compensation compared to their actions, especially when you contrast it with what Musk received for his contributions? Shareholders should have the opportunity to vote on the compensation awarded to the lawyers.
I can't watch this guy, my eyes huts
Very disturbing to hear Becky talk like the justice system is in a customer service business and that the clients they need to please are a few whiny corporations. Courts are exactly not supposed to do that in a democracy.
In any case, the premise is factually wrong. Businesses aren’t there because they get the best deal. The reason Delaware became the capital of incorporation is a historical accident. The reason it has stayed the capital is accumulated expertise that no other court in the world has.
There was nothing fair or balanced about the Tesla ruling. And to believe that the ruling protected the shareholders is a joke. Elon has brought more value to Tesla and thus shareholders than likely any other current CEO.
So he says to move the shareholders need to approve but when they approve his pay package the court can rescind it. Can they also overturn a decision to move if it was approved? Lol corrupt
You couldn't have interviewed someone less in touch with reality.
Great reveal of Elson's self-contradiction at 7:10.
Lawyers like this guy are just awful. I cannot even get through the whole interview of him. They are always so smug and sure that they have the facts and truth on their side but they are just blind to the principle of fairness. It should not even be possible for a judge to retroactively cancel the pay package voted on by the board and shareholders. The judges of this nation are not competent to run the companies nor evaluate what compensation is appropriate; especially ex post facto.
Tesla shareholders should sue the judge for corruption.
another biased Telsa hit piece from CNBS, yawn
The judge protected a tiny investor when 80% of the real investors voted in favor of the pay package. The guest is an apologist for chaos!
Elon Musk should walk away from Tesla and watch it crumble.
WELL, DELAWARE IS BECOMING TOO BIG FOR ITS OWN SHOES
I don't own any shares of telsa. But if Elon can make bring in so much money in the future for the stock. Then he should get paid.
Bro should gave probably worn sunglasses
Yes, Delaware protecting the investor by being the leader in number of offshore corporations being sheltered there.
This guy is protecting the corrupt judge and not what really happened.
Delaware needs to go. Corrupt as hell.
The ruling will be overturned for several obvious reasons. I'd bet on it.
This isn't good reporting, he reveled his bias after he states the foundation of the case?
Simply because you disagree with a 54B ruling you shouldn't just pick up and leave?
This clown wants to bring a bunch of random people on the board to disagree with the founder and one of the biggest visionaries of this generation
1:25 this guy is a mole here to get support for an activist judge. They should def avoid future issues
Every country in the world courts Tesla desperately, the judge...going by historical precedent overreached, and I hope the world's businesses completely shun the State, entirely.
I voted for musk also...it's a shame Delaware is trying to take my vote away! Shame on them
Charles Elson is clueless . The shareholder support Elon Musk so the court are not protecting the shareholder at all .
Delaware should continue the good work.. a message from Texas
Which good work?? Please explain.
He acts like a shareholders approval has any weight after this decisions.
Protects until it doesn't!
Everyone that owns Tesla owns it because of Elon they trust his judgment
This guy is nuts
He has crazy eyes. Run!
Shame on this guy.
It’s did not support musk for the shareholders
What a joke. As a shareholder, pay Elon his due
what level of greed is too much for you. 56 billion is a stupid crazy amount to give one person.
@Bradgilliswhammyman no it's not Blackrock and state street own this company not the board elon will get what he wants just watch.
@@Bradgilliswhammymanit's not cash but shares
Don't you understand. That's how it works
works out the same.@@TheMagicJIZZ
@@Bradgilliswhammyman The contract was to reward Elon with $56 billion in stock if the company hit a market cap of $600bn in a fixed amount of time. At the time of the contract TSLA was worth $60bn. Not only did TSLA hit $600bn in a much shorter time, it went as high as 1 Trillion. You tell me if that is fair or not? Take any job. If you hit some insane metric shouldn’t you get paid for your work, especially if it is written in a contract?
This guy is a super clown.
The share holders have already voted for Tesla to leave.
Tesla is leaving.
Anti-capitalist ruling.
Thats what Happens when all these companies move to one state thinking its the best tax state now the best is now turning into something else now you want to move 😂
Spin doctor doesn't tell me anything and try to cover up the bias
He really cannot look at things straight. Hard to believe him…
Notice how they turn into cry babies when they don't give what they want
Is this person to be taken seriously?
Yeah let’s take the most successful car company in America and shake stuff up lol. Unreal. Pretty funny the first women in that position would make such an emotional ruling like that and not beable to set her personal feeling aside from her job.
Does anyone else think Becky should be running for president
Maybe Musk could get about 10 times what Rawlinson at Lucid gets for each year.
Texas has a corporate franchise tax. But Abbott hands out tax abatements to anyone that will write him a check.
Interesting… I didn’t know about the abatements history there. Many incidents of him granting them for companies this big?
@@Mark__ we’ve pulled in a lot of corporations over the last 25 years. It started with Bush, expanded by Perry snd continues with Abbott. They give out abatements to anyone that says they will supply jobs whether it happens or not.
They Texas Instruments huge abatements in Richardson and it took them 15 years to get the fabs open. It goes on and on in the good old boy state.
Interesting.
A toddler billionaire didnt get his way and as usual throws a tantrum.
A stupid person without any information or education makes a comment.
to this guy - GFY
If musk plated their game no issue but he spoke his mind and now must be punished. 😂😂😂😂😂 vote Democrat for more.
The Ross Gerber of Delaware hacks.
Have shareholder vote. Pay Elon the $ or he quits tomorrow
Move the company this was political
Elon n TESLA...Welcome to Texas
Oligarchy , the rule of the billionaires :-)
Such a trite and immature comment!! You need to explain that one my friend. Do you really think Musk sits down with Bezos, Gates and others. .. He has nothing in common and opposed them in most regards. To suggest there is some cabal of billionaires is frankly stupid. Excepting those supporting WEF. Musk does not.
What ever!!!!!!!
Someone has to protect small investors when the board is corrupt !
I hope tesla leave and othere company move with them.
A very farsighted view on a complex subject from a smart guest.
Are you gonna take the advice of Charles ? Or the weathest man in the world ?
Elon is fortunate he's not in prison with some of the things that he pulled that the public is aware of and for certain that the public is not aware of.
delaware is a loser state now
This is not Musk's decision to make, it takes the entire board. 56 billion is a insane amount of greed even by Musk's standards..i'm glad it was refused.
The board did agree. The judge overruled the board and investors.
All the posters here defending a billionaire becoming a even larger billionare with a insane excess amount of more billions is hillarious.
The board should have done their job. Musk acts like a child when he doesn't get his way .
The judge overruled the board and investors.