Elon Musk's Tesla pay package drama 'is a conflict of interest case', says Weinberg’s Charles Elson
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- เผยแพร่เมื่อ 17 เม.ย. 2024
- Charles Elson, founding director of the Weinberg Center at University of Delaware, joins 'Squawk Box' to discuss news of Tesla holding a second shareholder vote over Elon Musk's $56 billion pay package.
Judge should focus on the law not how she feels. If the law is not broken, it is up to the shareholders and board members
The company doesn't have 56B to give him. They just laid off 10% of the workplace. 😆
@magnum-kj5ip yes they do it's called stock compensation
Let's say the company doesn't have 56 billion so they liquefy the company and all the assets, now what about all the customers that own Tesla products,
Nice Andrew....you have to push back on this nonsense.
He always got my interest when new interviews come 😁
What a fantastic discussion… new found respect for Andrew. I am not an Elon fanboy but imo Judges have no business making decisions on compensation and what is fair. It is the shareholders who should decide.
It's politically motivated decision since elon sided to be 'far-right' supporter against leftist (judge) 🤣🤣
@@geelangfordo3272 I agree but the shareholders at the time voted on the original compensation package and approved it. At the time I remember thinking the targets were ridiculous and Elon would never get there. But he got there and made many of the shareholders very rich.
@@TechInvesting But the compensation was approved by the board which was constituted by his friends/family. Wasn't that the issue?
@@mingdianli7802As a shareholder I actually liked the package. It aligned Musk with shareholders interests. There was tremendous value creation. So many companies with “good” governance award fat pay packages to CEOs which are basically guaranteed. I prefer this package with ridiculous targets. Let the CEO work hard, sleep on the factory floor and earn it.
@@TechInvesting Yes, I agree. Just wondering though, was the pay package approved by just the board or was it put to a vote that all shareholders participated in?
CNBC needs to protect thier friends at morgan stanley
Exactly the attacks are pretty much legal stock manipulation at their worst
Charles was really grasping short straws here. Great work pushing him in this interview Andrew.
This guy should be legally required to use FSD when driving a car.
😂😂😂😂
😂😂😂😂
😂😂😂😂
He does it voluntarily! He actually drives the alpha tester, the one that has all the bugs that they fix before we get the beta version. Now about 1M FSD supervised drivers/cars on the roads in North America and not one accident, death or injury caused by the system yet, but there will always be Luddites refusing to see what is actually going on because of irrational fears. Don't worry dear reader, NHTSA is watching very closely.
FSD works! If you have used it you, you would praise it. FSD is more valuable than the Tesla Supercharger Network 👈🏾
Wonder if this guy ever worked at the same law firm in Delaware as judge Kathaleen McCormick? Sure seems possible.
100%
Andrew..thank you for asking the tough questions. The guest is clearly not making comments based in Law.
Might be the first time I have seen some intelligent points raised by cbnc regarding Elon. Good debate.
We can't have people with personal vendettas make judgements in the court. What if your employer promised you a salary, and then rescinded it?
Beware of Delaware
0:57 did I hear that clearly? no value when he 10x the shareholders' investment? Does anyone have any idea how much the lawyers charged in contrast how much an average lawyer makes? and she 'felt' it's unfair for someone to have 'that much money'? she probably is a millionaire!
Dude also halved it in the past 2 years
CNBC has been slowly gaining my respect. Because this is a Wall Street oriented media organization, they're more inclined to seek the truth. The truth being that if you thought something was going to fail then it ended up making boat loads of money, then you have no choice but to change your mind.
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” ― Benjamin Graham
This guy is a total clown. Appointed judges with no business acumen deciding what’s “fair” and overruling a transparent vote among shareholders? Not many things less American than that.
As long as everything is disclosed the shareholders should decide not some judge who "feels" his compensation is not right!
Or too much 😂
I will vote my shares in-line with the Tesla BoD recommendations. Outrageous of the Delaware Chancery to overrule shareholders. Tesla will incorporate in Texas.
I'm voting no on the compensation package. Silly, egregious, and the stock has been down all this year.
Like the man or not, the contract should be honored.
It was a shareholder-approved plan, not a legally binding contract. In fact, the court ruled that the way the plan was approved by the board and shareholders was flawed.
@@maxentropy0305more like her judgment was flawed
@@maxentropy0305that's a legally binding contract
He literally owns the options at a strike price still from 2018 to exercise on 2028
He can test this theory by leaving
Hes the best conman because the people he cons still support him😂😂
Andrew did a good job 👍
75% of the shareholders signed a conntract with Elon. The contract must be respected. It's perplexing to consider how a judge could nullify an agreement between parties unless fraud or misrepresentation is involved, which isn't the situation here. Tesla's success is due to Elon, nobody else has done what he has achieved. The best option for shareholders is to give Elon the voting rights he wants, he will lead Tesla to it's future better than any other CEO. Elon lost control of Paypal when it was taken over by eBay in 2002, he then was the largest minority shareholder of paypal, may be he does not want to repeat the same situation. Tesla is at the start of a fantastic expansion, the EV and even FSD is nothing compared to the potential of Optimus, Dojo and AI. Elon is the best CEO to lead that expansion.
Musk wants a stratospheric pay package with TSLA shares now 50% off of their high and the company laying off 10% of its workforce.
And muskrats still want him to get this outrageous pay package. It’s peak stupidity
So if you're promised to be paid $5000 per month for your work and let's say 3 years later this company that hired you is in trouble decide that you'll only be paid $3000 per month and you have to return $2000 X 36 months ($72,000) do you think that would make sense or be fair? Elon Musk package was decided ages ago and it was based on company performance and he met the requirements so he should be compensated accordingly whether the stock is down 50% or not. A deal is a deal.
Conflict of interest is the problem. Period.
then dont be a shareholder. As a shareholder myself I think he should be paid, $tsla has made me an exuberant amount of money and should stick to Musks leadership. That leadership comes with a cost but its worth it.
@@jasonmillner6416 he shouldn’t be shareholder because he has a different opinion then you? You muskrats are a cult.
She said, he said. A vote by shareholders overrules everyone!
I think the Judge's salary and power is way too much.
Andrew raised his voice when his share selling argumentation sounded ridiculous, indeed it is more about the fact that capital was taken out of the company than from which basket it came
The only conflict of interest here was from the Delaware judge standing between shareholder’s rights and an agreement they made with Musk. I don’t care how outrageous some people think the potential award might be, we had the right to agree to it and she didn’t have the right to tell us we weren’t informed enough. How informed do you need to be to see the upside of that agreement? He offered to work for free until such time as all the various tranches were met OR receive no pay. So, he will get a 5% stake in Tesla for 10xing it in profits and market cap. Who in their right mind wouldn’t accept a deal like that? “You 10x my company for a 5% stake in it????” I can’t jump on fast enough. No, just because all the numbers are so big doesn’t mean Musk should be denied what was agreed upon for his leading the company to these highs. It isn’t about the money anyways, it is about the voting shares, shares he has to buy in order to get them, albeit at greatly reduced options prices, but he still would need to hold them for 5 years before cashing any of them in, AND he would have to pay another massive tax bill which the government in its blindness towards anything Musk has shot themselves in the foot about. Conflict of interest….?? BS
Way to go Andrew
Wasnt this started by a guy that had 9 shares?
A judge does not get to decide on the behalf of the shareholders whether something is bad or good.
What kind of idiotic system would that be and clearly that's de-valuing the vote power of the shareholders themselves. This judge is a complete moron.
If over 50% vote YES then Elon Musk should be compensated accordingly.
Actually they do.
She has no experience in such business matters.She doesn't represent us shareholders.I voted for his pay package.I will vote again. Delaware is going to regret this.Huge corporations are going to look at this b.s. and leave.
The dude moved the goal post from he sold the shares (which was not rewarded yet or at issue) to maybe he does not not value the share 😂
Hello 😊
@@Elonmusk633 by scammer
Andrew, well done!
Why is he is screaming at the guy? Sounds unhinged.
Charles is spewing complete nonsense
He’s so shocked by this and the anchor screaming he went crossed eyed! 😂
In Elon's perspective, I believe buying Twitter is not saying Tesla is a bad allocation for my money. But, instead Twitter (X) is adding value to the Musk's unverse, by consolidating the synergy to Tesla+SpaceX+Neuro. Now this sinergy has a voice; X.
🔮 possibly 🔮
Interesting perspective. Let’s see how it plays out in the future.
He was forced into it but will definitely benefit Tesla with X Grok integration into cars and Starlink internet etc.
Tesla lost Musk’s attention, losing $billions in market value. Reminds me of Apple firing Steve Jobs…
except Jobs was fire/let go by company. This is an external force (government judge) that has nothing to do in the company.
How invasive and overstepping of the law?! LAWLESSNESS!!!!!
If shareholders vote yes and the package is overturned by a judge once more, Tesla should should continue to put this up for a vote at every shareholder meeting ad infinitum.
It doesn't need to be spelled out. Much like Trump, this was a political decision by politically-driven judge. That's it. It's unprecedented and unjustifiable to void a compensation package that was voted on by the shareholders.
That guy is a clown...and he's teaching our kids? I think a judge should revoke his tenure!
This. Let's have a Judge evaluate his student's outcomes, his work output, etc to judge his compensation.
The judge ruled compensation wasn’t necessary to further motivate Musk to work for Tesla due to his pre-existing shares. That’s ridiculous. CEO’s are paid for the value they can bring to a company and should not be penalized for having a personal investments in the company. I read the entire ruling and its premise is completely illogical. CNBC, do a deep dive on the ruling and you’ll come to the same conclusion.
Dude a billionare in tesla stock. It his own fault of he doesn't bring his 1000% to grow his own money.
Elon is not entitled to that money, the whole contract was silly...good on the judge. Common sense prevails.
“you bet on a bet and if you lose you lose the bet”
-Joey
I don’t understand why a Judge circumvents the compensation committee…
Hell of a interview Andrew!
“Fair”, the perfect metric for determining objective measures of economics and operations.
It is not fair that my neighbor has 20 corvettes. So rescind
Americans survive or corporate grift survives. Who wants to take bets?
At the time this pay package was awarded, Tesla stock price was $22.33. The package included 330 million options to buy at that price.
He received no salary in the package.
Had the stock not gained in value, or if the company went bankrupt he would receive nothing. The $56 million that keeps being thrown around is the value a month ago of the stock, it’s dropped since then and so has that big number.
This has been so mischaracterized by the media and the Delaware court it is crazy. Unfathomable is only because he did what the package required. At the time the pay package was awarded nobody had any idea the company would be so successful, it was a total long shot and to look back and say otherwise is plain BS.
What did Musk actually do?
@@bdnnijs192built the most important automaker in the past 100 years
@@TheMagicJIZZ
Two people founed Tesla before Musk came in, Musk didn't design a single Tesla, and it's questionable wether the guy ever held a spade or wrench in his life. So it warrants asking what did Musk actually do.
Note: Musk dind't built Ford.
Here for the comments 🍿
🤭👀🍿
What a numb nut way to interview people andrew... jes let the man speak! If you dont let your guests answer your questions than whats the point. charles was right on point by the way. Musks delusional handling of investors money is a crime.
Andrew reminds me of the delusional fan boys
The Delaware judge's decision was based on political bias. In Texas, it won't event go to court, and in any case, a judge will rule differently.
It seem like Andrew like to drink the Elon Kool Aid 🙈😂.
Seems like you like drinking oil from the fossil fuel industry
@@Wongseifu548 Hahaha Loved it when i see Tesla fanboys comments here. The sooner you get off that Elon Kool Aid the better your life will be 👍. There's still time til the next earning meeting 😂😂.
@@rj8u liking your own comments I see
@@Wongseifu548 there I'm just liked my own comment 😂 you happy Kool aid boy!!!
You cannot take back a promised, investor approved compensation plan just because hi reached the extreme goals and benefited his investors as well. This was a frivolous lawsuit.
Why would any shareholder in their right mind want to payout 55 billion and dilute their investment? It's more money than the company have every made in profit
OBVIOUSLY THERES SNAKES ON THE BOARD WHO COMPLAIN TO PRESS, SHORTING THE STOCK OF THE COMPANY WITH THEIR WHINEY MOUTHS AS A CONFLICT OF INTEREST? 🤨🙄
I love that the news anchor is fighting for what’s right not just envious of musk’s success
Speechless!
So now we are allowing socialist judges decide what is too much pay??? Someone needs to tell her this is not Canada or Europe
As a public company, Tesla’s board of directors are not independent. Teslas BOD governance is what the Judge has a problem with.
There is no argument to defend this level of greed and narcissism.
Look at comments by elon fan boys in any Tesla related video. At least they are still trying 🫤 _almost_ hard to watch ; )
Nueralink has no commercial value. There aren’t enough quadriplegics 😂
The judger is Political motivated.
The host, without a background in the legalities, disputes an EXPERT'S opinion? 🙄😳
WTF!
whatever happens between Musk and Tesla shareholders is their bussiness and nobody else's. Let capitalismm work
Its irritating hearing him yell over the guest and cutting him off midsentence
Leave Elon Musk alone . He is a national treasure . Left alone and he just might cure cancer or build the first Lunar or Martian colony . We only have one of him America .
"Left alone and he just might cure cancer"
LOL- cancer?
When trying things outside of his "wheelhouse", he whiffs. Like the lame effort of the submarine to try to save the boys stuck in the cave. It had zero chance of even coming close to working according to people familiar with that cave.
Go ahead and not pay him. Let’s see what happens to Tesla and its stock if he walks away from it.
Charles Elson is out of his element here...
Obviously, he cannot see the issue straight...
Musk relentlessly hyped and pumped the stock from 2018-2022 to maximize his pay package - and then having completed maximum pump, and maximum pay, he dumped (his existing equity) at the top.
🎯
have you looked at the compensation package requirements? it was based on revenue and ebitda metrics as well
This guy’s expression reads: we’re shameless but we’re winning, so f u capitalism.
capitalism needs strong guardrails. 56 billion is a silly amount of money for one person to be awarded..nothing Musk did is worth that kind of money. Stop defending billionaires.
So many clowns in Delaware, lucky we have Andrew to fight for the fairness
Megalomaniac Musk also wants 25% ownership. He claims its so he can oversee the development if ai, but if you recall in the past he spoke of how jealous he was of how Zuckerberg formed Facebook in a way that he could never lose control. I'd bet thats more what the 25% is about. Not like Mvsk doesnt have control of how ai develops now. He just wants total and lifetime power.
He has 21% already
Musk deserves a 10k bonus per car sold.
Now everyone understands why Elon Musk will never allow his other Companies to go Public. It will prevent morons from telling him what to do.
This guy has a bias towards Elon!!!!!
Vs the other guy who has a bias against elon
Jealousy at its best. Im an investor. I supprt the compensation. I dont need another third party telling me whats good for me.
This case is ridiculous and should have been thrown out as frivolous.
The time to discuss fairness was in 2018. You cannot undo the deal. Its not right.
Elon can afford to get that pure stuff by the pound...
Judge had the power to decide whether the correct process was followed, like it or not. It looks this host is personally upset.
Btw i got bills to pay argument makes zero sense for something as huge as 55B. Frankly cnbc looks upset because one of their most hyped stocks is going down for really good reasons, even leaving aside Musk's compensation issue which is clearly not helping.
Nonsense all around, they made a contract, investors signed off on it and he achieved impossible targets pay the man. There is no other discussion here. Judge is a stooge and Elon hater tied to current administration. We will vote to give the man his due.
He’s gonna win the pay vote because prior to the vote he threatened shareholders with leaving and poaching all their robotics and AI talent and information. So once he wins that vote, the stock is going to 🚀
so the judge of Delaware FEELS it was unfair... wow.
Andrew please do your homework.
These comments pertain to logic rather than Elon Musk. If someone received a bonus in the form of shares five years ago, and those shares have increased in value at an astonishing rate over the past five years to the point where they are now ten times more valuable, it raises several moral questions to consider that the recipient is not eligible for the bonus based on the initial valuation from five years ago. Taking back the shares that have increased ninefold and returning only the amount equivalent to their original value poses many ethical dilemmas. For example, suppose someone received Bitcoin as a bonus 20 years ago, and its value has now increased 100,000 times. Should we then take all the Bitcoin and allow the person to keep only what was worth the original value 20 years ago? Both the share and Bitcoin examples involve risk, as the values of these assets could also have decreased. Therefore, the bonus recipients took a risk, and fortunately, it resulted in a positive outcome
Capitalism is broken
Tesla 2018 - 2022 (timespan of the comp plan):
Revenues: $191.4 Billion
Gross profit: $45.2 Billion
Net income: $17.9 Billion
Hello sir how are you doing sorry that I am texting you on here I am just checking up on my fans on here
His guy is nuts.
No value?????
I'll trust the judge over a journalist
Hello sir how are you doing sorry that I am texting you on here I am just checking up on my fans on here
All these fanboys crying , I bet not one of you has read the transcript from court . The board should have done their job. A board of yes men always get companies in hot water.
Apply this logic to dual class meta then or the New York times or Google
Tesla is single shares class..plus the pay committee is independent but there's no law that boards have to be independent due to equity among founders
PepsiCo has to be independent but Tesla or spacex why?
Because Delaware laws require it .
This guy Elson is a Tesla hater. He wants judges to decide corporate pay?
Elon's interests is the thing at auction, no one can say if he is given the funds the Tesla will be given his focus in a worthwhile percentage given his other interests. Rockstar or not, CEO is an employee and this one is clearly moonlighting, does his job deserve his pay? It is called compensation for a reason. Judges should not decide worth or value but sometimes are forced into it as part of the legal equation, because our laws are frameworks for messy system.
Get based on the stock's performance.He should not be getting that money. Yes I thought c e o pay was based on performance
Ok clueless layman, this is exactly what it was based on and one of the few in the markets the rest of CEO comp is based on bs factors. He achieve all performance targets and then some. Please read something before embarrassing yourself.
Charlie Munger was right. Eletist acedemics have no idea.
He pumped the stock and then dumped, because he knew what was coming.
🎯
⭐️⭐️❤️⭐️⭐️
#votetesla
⭐️⭐️❤️⭐️⭐️
@8:39 Sir, sending a kid to college, buying a house could only be your goals.
Elon would use the money to do some world transforming ventures, this would enable him to do more.
This judge is not a visionary like Elon musk, Elon is once in a generation phenomenon.
Encourage and incentives hardwork., don't be a reward blocker, your stupid laws have already ruined marriage for men.
Musk reads the writing on the wall. His fortune is crashing, as Tesla stock tanks. Elon wants the biggest golden parachute in history.
plausible explanation
Nonsense, most people like you have no idea what Elon or Tesla is up to just reading media trash.
This guy can’t see straight haha😂
Elon will start a gas operated car company and put Tesla out of business. In all honesty electric cars, teslas in particular are a luxury status symbol.
Since when do you need every shareholder to agree on something? This guy is a joke