Musk's Pay Package: Tesla Shareholder's Lawyer Weighs In
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- เผยแพร่เมื่อ 30 ม.ค. 2024
- Elon Musk's $55 billion Tesla pay package has been struck down by a judge in Delaware after shareholder Richard Tornetta challenged it as excessive. Bloomberg's Max Chafkin and one of Tornetta’s lawyers, Greg Varallo from Bernstein Litowitz Berger & Grossmann, join Caroline Hyde and Ed Ludlow on "Bloomberg Technology."
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What about all the CEOs that make millions when their companies lose millions? That seems much more unfair.
They get money, Elon does not get money. They are being paid. Elon not.
Elon can just take his people and do his own spiel elsewhere.
And F..K the US of A.
You re so smart
Over the last 27 months TSLA has dropped around 230 points. During this time Elon has lost millions for thousands of investors.
@@thewolfdoctor761 Yes, and you would do better and demand the CEO post for yourself.
Go ahead and convince the judge that she gves you the job.
Good luck.
If you do i will sell everything Tesla and buy VW.
Just FYI.
@@thewolfdoctor761 Over the 24 months, HE HAS NOT TAKEN ANY PAY or is under any PAY PACKAGE. He is basically working for FREE. Are you going to work for FREE for a company also???????? I BET NOT....Idi0t....Know your FACTS before you say something dumb. When those pay package was in effect, if he didn't meet those goals set by the company, which were almost impossible to meet, then he would have gotten a ZERO dollars.
As a shareholder, this makes me so angry. I voted to approve this comp and Elon delivered. Now this judge wants to take away the value of my vote.
Nobody cares. Delete your account
It was an unjust proposal to begin with. The directors involved in this deal are grossly incompetent and Musk's friends.
Elon loves clueless gullible investors .
@@bobbybishop5662 What is it that you know that I don’t?
I guess saying BILLION really loud is a good argument for some judges
It worked for Dr. Evil! 😉
Read the opinion. What the Tesla board did was clearly unethical.
@@singed8853
In what way? I loved the package 2018 and loving it now. The share price is 10x even with the horrible market conditions. Which part of this is unethical?
@@andrasbiro3007 The process was unethical. A board is not allowed to neglect shareholder interests and simply rubber stamp the most lucrative compensation plan in history (by a 33x margin). The board was found to have failed to evaluate the compensation package and found to have failed to meaningfully negotiate. That is a violation of its fiduciary duty to shareholders. Shareholders should have done even better than they did over the past few years but they had over 50 billion in dilution - some of which should likely never have existed.
@@singed8853 This is ridiculous. The terms were quite clear for shareholders to evaluate for themselves. It was a literal no-lose deal for them: he was only paid anything if they made money. The targets were widely considered far-fetched at the time. And above all, there is no way to unwind it after the targets have been met. Only Mr. Musk's compensation can be stripped away. The growth he delivered for the company cannot be undone and his time and work cannot be given back to him.
haha that lawyer has trouble saying Billion with a "B" - unless it's his payout from winning this case.
In Delaware, the judge can decides if your CEO pay is too much or not now!😂
The judge also admitted that they did not know what they would consider "fair" in regard to the compensation amount.
Guess you can legally know for certain if something is unfair even if you have no idea what would be fair.
@@anonanon1604it makes perfect sense. All the court has to do is determine if a package was fair. If it’s not the work of the court is done.
Flaws in the process was what caused the fundamental unfairness.
Idk maybe don’t have your brother on the board putting forward your pay package? Tesla actually needs to be investigated.
$55 billion payout for a company that made $10 billion in profits last year. I don’t need to be a judge to tell you Elons trying to take the money and run. Leave you all holding the bag. Have fun holding down that bag gents. Lol.
@@joeybulford5266Maybe any board without brothers must be fair.
The person with 9 shares gets to overrule the majority of shareholders. The packs was clear 10x foe 6%. We voted yes
Although I disagree with the ruling, this lawyer’s point was that the shareholders made a decision without having all the information; meaning, the board withheld information from the shareholders at time of vote. That is a very dangerous statement especially for a ‘public’ company. There needs to be full transparency of an issue that is being put to a vote by the board to the shareholders. Otherwise we are in for other companies abusing, manipulating and/or misleading their shareholders at time of voting. The implications are quite broad…
@@SonTimbacorrect. Elon and the board did not do this properly. It was unethical. The board has a fiduciary duty to the shareholders. Shareholders voted on the pay plan in light of that fundamental expectation. The board submitted the pay plan for a vote without engaging in a meaningful negotiation. By far the most lucrative pay plan in history and no real negotiation? That’s not lawful or ethical conduct.
Oh ya! I bought $TSLA shares and voted "yes" because I thought @Elon was a bend-over pussy that lifted his tail to the status quo crew. And I thought he was not at all manipulative.... NOT! Company executives withholding information? Company executives doing shit to boost their company's stock? Oh ya, that never happens... NOT!@@SonTimba
@@singed8853 Did you even look at the CONDITIONS for the pay to be in effect??????? Why don't you go and look at it yourself and see if you would have agreed to those conditions when it was almost impossible for Elon to meet those conditions because they were unrealistic, almost, but he actually accomplished it.
@@1flash3571 Elon agreed to those conditions. He believed it was to his benefit and he was correct. Was he crazy or stupid or irrational? Why wouldn’t I do it too?
Furthermore the board and Elon had access to internal projections which showed the company was already on track to meet several of the tranches. This was non public info that outside analysts had no ability to evaluate. So yes after reading the opinion I would have taken that deal over a normal comp plan. Without question. The board and Elon attempted to fleece Tesla shareholders.
I don't often say this, but I get visceral feelings of loathing when that attorney speaks 🤮
Colonial sanders does not represent tesla shareholders. His client owns 9 shares. This is about greed . It is about gotcha. It's about going after money that is not your own.
as is customary in the USA
Why should Elon get $56 billion of shares in Tesla when he’s threatened to take Tesla IP to other companies he runs?
@@joeybulford5266 Wow....dumba$$, HE CAN'T TAKE TESLA IP to other companies he owns. HE can start Ai program at his other companies rather than to push for Ai at Tesla. TWO different thing.
@@1flash3571
And guess where he’s already been developing that AI? At TESLA. He’s already been spending time on it rather than running Tesla, which you know, is why the board wanted to reduce his control of the company. Now he’s taking that AI to a different company? It’s the exact same shit he did with the solar company, convinced shareholders of Tesla to buy his cousin’s failing solar and proclaimed Tesla was now an energy company. Newsflash, they’re not. Tesla has zero revenue from the solar company it spent billions to acquire and your dumbass just let’s him screw you over. He’s stealing money from Tesla
@@joeybulford5266
He already earned that money. And he doesn't care about it, he cares about controlling the company. AI is an extremely powerful technology, worse than nuclear weapons, so he's afraid of losing control of it.
And this decision only reinforces his paranoia. If the board can't give him the 25% control he wants beacuse of this, then Elon will build the $100T AI business in one of his private companies, and Tesla shareholders lose.
rip delaware
Why does the judge care for if the pay motivated him? Who determines what’s in my heart?
On behalf of the 71% of the shareholders that voted for Elon’s compensation package, this lawyer and his one shareholder that he represents can GFY!
the board can try to give the same or equivalent package with better info to shareholders and have them vote it again. Their winning point wasnt the sum of money but the lackluster communication to shareholders.
@@sza2bom Funny how lacklustre platforms by politicians that get voted in and never materialize.... that's ok? But a little poetic licence with some rules to execute a nearly impossible task to achieve outsized rewards with a failure of a single goal in the list of goals meant he got nothing... that's a problem? I can't see this standing up to an appeal. I can however see them re-writing the package and it being even more lucrative than the last and it being passed by vote again.
@@sza2bomPfff that won't stop a corrupt judge from STEALING his compensation package in 5 years when all Tesla objectives have been met
Ok? Who cares. The judicial system doesn't give a fuck what a bunch of other shareholders *think and feel,* just the law. Maybe, idk, suck it up, buttercup.
@@sza2bomthe same judge forced Elon to buy Twitter even if Twitter did not disclose bots are 50% of their active users
The bottom line is that the comp package was approved by the majority of share holders. The short seller with just nine shares has got this lawfirm involved. I also heard that the judge couldn't say whether or not his comp package was fair based on the annual revenue and potential that Tesla has. If the judge doesn't know, then maybe $55 billion is fair?
Looks like the law firm made this shareholder involved.
I don’t think the judge is the problem! Elon is leaving him self wide open .
Go listen to the break down of the case and you will see how he Is leaving himself wide open and exposing him self to share holders to sue him and after this case and the way the judge broke down her judgement I think this is going to open up a bigger can of worms for Elon .
The board is not doing there job clearly and agreeing to pay Elon 55 billion is fine but failing to secure where he spends his time and going to other companies and taking Tesla employees and using them for his private companies is completely inexcusable with out direct compensation and equity for Tesla shareholders in those companies , space X .
I support the ideas but it’s bull shit to be stuck on this roller coaster he is dragging us shareholders on and not be compensated with equity in these other companies when they are directly effecting Tesla but take the the time of our CEO ,
Who we are supposed to to pay 55 billion to .
This needs to be addressed and Tesla shareholders need to compensated with equity in space X and X and any other company he has given Tesla resources to . And elons time is Tesla’ s resource And any board that fails to secure that is probably lining its own pockets because they have equity in these other companies and are screwing the public .
@@benjaminlennox3495 You bought a couple of shares and now you own Elon Musk? Hold your horses there buddy, slavery was abolished a century ago.
You pay for performance bitch not for his time. He laid out a very good deal - a fuck ton of performance for a massive payout. A majority of shareholders took that deal.
If you're not satisfied you can always sell your shares and buy Disney for example. They only pay their CEO 30 million a year. In exchange your share price goes down, not up. I'm sure you will be very satisfied...
@@benjaminlennox3495 The compensation from Tesla for those borrowed engineers (the best materials science team on the planet) was not in dollars but in value. They brought a new material that has allowed Tesla to do things differently. That is the value that was brought. Employees move freely between companies as I understand it. If you're on the team, you're on the team. This is how you retain the best talent in the world. Attract the best and give them freedom to figure shit out. Look at the advances in the Optimus bot since that first wobbly thing waved at everyone on stage. They are moving at light speed. Let them keep moving at light speed. I'm just waiting to see how Elon and his team turn this to their advantage.
@@benjaminlennox3495
Wrong. We shareholders got exactly what we "paid for". And the package expired yeas ago, anything Elon has been done since then doesn't count.
Also the same judge forced Elon to buy Twitter. And SpaceX existed before Tesla, so shareholders know what they are getting.
It was NOT a pay package. It was an option package that he has to pay for at the value at the time it was signed.
actually, the options can be discounted, or not, but usually discounted from the current price when it is granted. I believe that his options price was basically given to him at under a dollar per shares. I could be wrong though. He does have to pay taxes at the current price when he exercise those options though.
@@1flash3571You are wrong, though. They used the price per share of the day the compensation plan was granted. The stock price later went up, of course, but that's normal for options.
No matter how you twist it, its still a payment.😂
I think people here understand what an option is and how it's exercised for profit. Not sure why you're here arguing semantics, this is clearly part of his compensation package. And since musk now lives in Texas he likely won't be paying much in state taxes when he exercises either.
@@1flash3571 no, market value at the time of granting of the compensation plan.
As a shareholder who voted for Elon to be awarded the money I am very upset. The Lawyer keeps saying "the pay was so ridiculous, it was the biggest ever" Yes...….. and so was what Elon did for Tesla. THATS THE POINT!
TSLA is down 230 points over the last 27 months. This is also what Elon did for Tesla.
@@thewolfdoctor761 What is it compared to the time the suit was filed?
10 fold? Is he responsible for that ?
@@thewolfdoctor761go away libtard 😅
@@thewolfdoctor761 This will age like spilt milk. Let's revisit in 10 years.
@@user-qh9lu5cl6n If Tesla can stabilize itself, it has a good future. Right now the Board of Directors and Elon are a disaster. If they can't get their act together, I can see the stock dropping well below $100.
do they really think that we the shareholders are stupid enough to not read the proxy?
You are
I wonder what the Supreme Court's take would be on this
None. They won't even take the case. It does not have any novel Constitutional questions. Tesla is incorporated in the state of Delaware as a tax haven, and they have to accept the consequences of Delaware Law that comes with that.
Greedy grandpa saw a chance to line his pockets with a useless lawsuit and only won because his opponent is unpopular. If his only argument is that people shouldn’t make that much money, that’s not a legal decision but a moral one, and should be confined to philosophy classes rather than courtrooms.
He literally argues that he already has shares so he doesn’t need to be paid. That is astounding.
‘…..and your plan is to blackmail this person…..Good Luck’
You think people would have learned this after he told Disney to GFY. It’s entirely clear what will happen if you try to Blackmail the richest, smartest, most influential person on the planet? He will make sure the whole world will see just how awful you are. Play stupid games, win stupid prizes.
Yes, that point of view is called in other words : sanity
the lawyers that worked for the plaintiff are demanding 6 billion in legal fees from Tesla now. honestly, if they want to get paid, they should talk to the plaintiff they were working for.
How about addressing the shareholder with 9 shares of Tesla bringing the suit against the package to short the Tesla stock? I would seriously reconsider incorporating in a state that can override on agreed and approved past contract. The whole point of incorporating in Delaware was to not have the justus system interfering with your corporation? FYI, Tesla is not just a car company and Elon actually shows up to work at Tesla where Bezos and Gates are on permanent vacation. That’s why Tesla is also an Energy, Recharging, Robotics, Biomedical, Software, Social Media, Computer hardware, &Battery manufacturer. Just because an attorney and a judge can’t get their head around the scale of Tesla and Elon doesn’t mean they have the right to strike down or pass judgment of a businesses contracts and agreements. This is the equivalent to striking down a prenuptial agreement to a 6 year old marriage because the aunt doesn’t want the wife to get anything when the husband runs off with a supermodel. Arizona and Texas are looking pretty good right now, Delaware is about to loose an awful lot of revenue because they want to be able to stick it to Elon.
Tesla is a car and energy company. Tesla is a separate company from X(twitter), spaceX etc. So Tesla is not all that you mentioned. And do not forget that Tesla is a public company, meaning it is prone to public scrutiny.
@@gorkxs can you buy stock in X or SpaceX? No, then Tesla is the only stock you can buy to get standing in the decisions these companies make? The original point of buying stock in a company is to be able to participate in the high levels of decision making and to be penalized or rewarded for their outcome. None of the companies would prosper without Elons influence, he removes anyone that steers the company off course (his vision) and the people who stay want to learn from the smartest person in the room and share the vision. Pretty much every other business out there is focused on personal power and greed and hide it behind a goal that they don’t bother to follow. If you continue to focus on the details in front of your nose and don’t back up to see the bigger picture, all of this is going to be meaningless to you. Elon is doing business a different way, it’s successful and it works wildly better than anything else and I want to learn as much as I can, even when I don’t have anything to contribute to the vision.
😂 You dummy, the major reason why fortune 500 companies are registered in Delaware is you don't pay corporate tax on out of state profits.
They're literally losing out on $0 of corporate tax money by Tesla moving to Texas.
Why don't you let that cook before I go through your ridiculous list of all things Tesla supposedly does.
why was this not challenged when the Package was Proposed
It was. The lawsuit has been kicking around for years.
Cause no one believed Elon could meet those crazy performances metrics
@@amythomspon956 except the board. And except Elon. Read the opinion. Their internal non public projections at the time indicated Tesla would hit several of the tranches within a couple years. Yet they gave him tens of billions anyway.
It’s for the shareholders to decide which is exactly what an overwhelming majority did all the way back in 2018!! what am I missing here??? By sticking their stupid noses in and trying to “protect” shareholders literally all they are doing is hurting them.
Business doesn’t work if you make a deal with someone and then just completely go against the deal and not honour it after that person fulfills their end of the deal. what a joke
Interesting how a court decision that was supposedly decided "in favor of the shareholders" does not actually favor the shareholders.
Sorry, I guess it did favor one shareholder, the plaintiff who owned only 9 shares.
Yes, coz all those robotaxis making huge money right now...............
@@anonanon1604 You don't understand how shares work, do you? Imagine if you bought a pizza with your friends. Everyone grabs a slice except Elon who grabbed all the remaining slices. Then his mom yells at him and tells him to put them back. You yell at his mom that she did this to him in favor of herself. Then she corrects you and tells you that when Elon put his slices back it meant that the rest of you now each have more pizza. This is how shares work. If shares are returned or bought back by the company, they are usually destroyed, which means the total shares in circulation will decrease by about 10% which should push the share price up.
@@chunkyMunky329 LOL, that was all kinds of wrong in that explanation
@@mh6037 If I'm wrong then why has Apple bought back hundreds of billions worth of shares over the years? Its because Apple investors are not just illiterate edge lords. They understand that returning shares to the company pushes the stock price up. It is one of the standard strategies used by companies for many decades now.
Elon is not seeking more pay, he's seeking more control, do your darn homework Doomberg.
Right after he gave up that very power by way of selling his shares for acquiring twitter, now wanting to use tesla as an atm for that decision while threatening to not give tesla the AI advantage share holders bought into; a bit of bait and switch… again, the rules change when its a ‘public’ company. No one is questioning his right to do with his company whatever he wants, what is being questioned is what he does with a public company. I disagree with the ruling, but also understand their point especially after Elon’s AI threat against Tesla.
You are hopelessly naive if you believe he simply wants more control. Read the court opinion. He has the board in the palm of his hand. He controls it essentially completely. He’s lying to you - he just wants a giant payday without appearing greedy. Bloomberg isn’t foolish enough to just report what Elon says as if it’s factual.
Elonstans begging to have their shares diluted to all hell lol. Buncha geniuses they are.
@@one1blue Are you really this dumb?????? Do you think Tesla would be where it is today without ELON?????????? Go back to your mother's basement, idi0t.
@@one1blue Shares are up 10x since the time of the lawsuit.
The stock went down when this came out. If this was "in the interest of shareholders" shouldn't the stock go up? The only people to benefit from this are the lawyers - not the shareholders, not the company, not the employees, not the board, not society. Just this lawyer. Shameful.
they are afraid Musk would stand up and leave to concentrate on spacex and whatever other side projects. If Musk leaves that would be a huge hit on share price (probably)
Doesn’t matter. Read the opinion. What the Tesla board did is 100% unethical and they essentially robbed billions from the shareholders. If this decision is upheld on appeal it will serve as a warning to other corrupt/conflicted boards.
@@sza2bom
Exactly. That's why they shouldn't mess with his package. Even if not everything was perfectly by the book, there's no actual harm.
silly America ! We should protect Elon. Just idiotic these guys. America is falling . Hhhhhh
That's nonsense. Firstly, when Elon's shares are eventually given back, they might be destroyed by the company which is the same as a share buyback. It reverses the dilution that occurred when Elon was given his shares. So all shareholders benefit. Also, stock prices can go down in a day and then bound back in a week or two. Its meaningless.
IT sounds like the LAWYERS ARE BEING WAY OVERPAID.
Elon musk is the company
Sorry you didn't consider the Key Person Risk before investing in a company.
it's crazy how a person with 9 shares is suing on behalf of shareholders, we want Elon to stay as the ceo, gain more control of TSLA, and to get paid on a contract the board agreed on 6 years ago like damn
Corporate governance is a real thing, if you don’t like it, then don’t go public.
You should be grateful for this shareholder fighting for YOUR UNGRATEFUL ass.
This lawyer is looking for a great pay cheque.
I am a share holder and am very happy with Elon. He works like a dog to make Tesla successful.
Share holders are making easy money off of Elon and everyone else at Tesla.
Greedy shareholders are complaining they need to make more for not doing anything.
You could have had Elon for a fraction of what the board gifted him. But go ahead and be happy about getting robbed.
How does the lawyer get paid?
My dude. He “works like a dog to make Tesla successful” is bull considering that this is a CAR company, not a tech company. Its priority is cars and they don’t even do it right. The market cap of the stock is based on a false belief that it’s a tech company and make false promises which have yet to be fulfilled.
@@user-xb9dx2mp1z I'd gladly purchase all your Falling Knife TSLA shares at whatever rock bottom plus 10% is in your mind.
@@singed8853
I'm getting robbed by this corrupt judge. If Elon leaves Tesla because of this, my savings could go down the toilette.
You can't get robbed when you are willingly enter into a business transaction. Even if Elon would have done it for less, I don't care. If he did it for free, the share price wouldn't be significantly higher, so it makes little difference to me. And I want Elon to have more money, because he's doing cool stuff with it. Among other things, I want a Mars colony, and that's going to cost a lot more than $56B.
Shareholders lawyer, what a prat. 80% of shareholders voted for it and he met the targets! And then the judge and Delaware, what losers.
Yeah the 12 targets were intentional set low
@@fauxbro1983SET LOW!?!?!? They were considered impossible by the general consensus of everyone with an opinion in the media.
He reached his goals, allow the guy to buy his shares. The tax withheld in that operation goes to the IRS and the stockholders are richer for it.
@@fauxbro1983 I don’t think so, especially the market cap one, have you looked at them?
I can't believe this went to court. If a minor shareholder doesn't like something they can sell the stock
Vapoware salesman going down with partially-existent and non-existent Teslas
Elon commits borderline fraud on a daily basis. And even if the guy is a minor shareholder, the law does not say that a mob of sycophants gets to vote away an individual's rights to not be defrauded
HE WAS A SHORT SELLER ................ he never really owned any stock .
Thats not how the law works. If you own part of a company the other stakeholders and shareholders cannot vote away your legal rights and leave you with only the option of selling
To quote Nelson from the Simpson: HAAAAhaaaaaaaaa! 🤣🤣🤣
Good thing Elon won't lash out at everyone around him and make this problem worse
Breakdown:
•Board said if Elon can 10x the company, he gets 6%. Very high target, somehow he accomplished the impossible.
•71% of shareholders voted "yes" to pay him that 6% package.
•One shareholder with like 9 shares disagrees and somehow can override the opinion of the 71% simply by getting a lawyer and one judge, bureaucrat, decides instead of the shareholders that Musk gets no package.
•Law firm will probably pocket a few $billion from what they helped the shareholders "save" from Elon.
Conclusion: This needs to be appealed, supreme court. This is infringing on properly conducted corporate governance.
Not sure who that old dude is but I can tell he's using persuasive language. So I'm more suspicious of him than anyone else.
The old dude is the lawyer representing the Tesla shareholder who took issue with Elon's pay package.
Sounds like you have some real high level thinking capacity.
Just move to Texas…this is all a joke.
Already is planning to
As a Tesla shareholder, listening to this lawyer try to justify his position makes my blood boil. Shame on him!
Here, have a tissue.......
dude, pls, I'm crying with laughter
After losing a lot of money in the financial markets last year, I really need to make wiser decisions this year especially with the economic downturn on the rise.
I completely understand your concerns. Navigating the financial markets can be very challenging
What I would suggest you do is seek the proper guidance of a professional advisor that can manage your portfolios the right way
You're right Roberts. I have been working with a seasoned professional advisor for the past one year now, and it's been an amazing experience both financially and mentally
His full name is Kurt Bastian Vogel
Kurt and his management team have completely transformed my financial life and mentality towards wealth creation and investment.
What was the package worth when he signed it. Many believe ZERO.
This judge use her politic to write this judgement.
The judgment that you have read none of. This is the state of discussion in our society. No interest in substance.
@@singed8853 The pay package that 73% shareholders voted, that no one realistically believed Elon could achieve, essentially will work for free and that increased Tesla stock price by 1100%- just to be override by the hatred of Elon’s political opinions!!?? Every company should ask this politician judge if she approve of their board of directors picked!
@@akira28shima32 consider reading at least a portion of the opinion. If you read it you will be unable to defend what the board did.
@@singed8853 I should read 200 pages of shiit soup!?? As an Tesla investor that owned more than 9 shares, this judge is clearly writing a political opinion. Should Tesla go to her for permission to hire their board of directors now!?
@@akira28shima32 why do you think the Delaware chancery court exists?
I’m not saying you should read the full 200 pages. But if you don’t even read portions it’s in my view wrong to be so highly critical of the decision.
What a politically motivated slap in the face to all of the shareholders who voted for the pay package. Look at the guys face when he talks, he doesn't even believe his own words coming out of his mouth.
He earned it. Give this man his due.
This guy clearly has ulterior motives. There is something very suspicious about this lawyer and judge
He never states what was or wasnt said that was misleading.
You cannot trust Software
You cannot trust Hardware
You cannot trust Delaware
I heard it was something like 650
Million dollars in legal
Fees if Tesla settles. This firm just hit the biggest lottery in history. It’s scary that virtually anyone who owns shares can take down a company
It's not scary if everything is above board, which wasn't the case here.
No. It is AWESOME that an abused lied-to shareholder has the power to fight back and achieve justice against a spoiled freeloading terrorist (Musk)
Wth as if the lawyer should able to decide that. Thats up up to the shareholders
if elon could time travel what then would have been a good alternative to this massive package? I mean if someone wants to work hard starting tomorrw and make a lot of money while not having this comp plan option, what are the remaining choices? Am just trying to understand what the future implcations are. Should the CEO instead go for a massive monthly salary? or should he structure each new gigafactory as a separate entity? If the logic here is that the board of directors were not truly independent is it okay to design a similar or bigger comp plan next time so long as the court feels that the directors are independent? Is'nt this judgement just logically flawed?
Who cares how much. The injustice is that it was a reversal of a contract that has been agreed upon lawfully.
Millions of TSLA shareholders lost BILLIONS with this debacle.
Boosey Hoosey bubba blubber
Sorry you didn't consider the Key Person Risk before investing in a company.
They will lose $56 Billion, if Musk succeeds.
you cant lose billions unless you have billions to lose. The stock price has dropped because of uncertainty . Nobody loses a dime unless they sell their Tesla stock at a loss. Its also made it so shareholders can buy Tesla stock at a lower price. What its really doing is allowing short sellers to get out of short positions. Shareholders will vote on another package Elon will get what he deserves and the Tesla stock price will GO to the MOON. THE ROBOTS ARE COMING .
I promised myself many many years ago to never wish horrible stuff on people ever again but it is REALLY difficult for me and my moral compass to watch this smug lawyer working with a client that owns only 9-shares work the system with the help of a corrupt judge who has now presided over BOTH of Elons Delaware court cases and has the backing from the top because this (Delaware) is Biden’s home state. Not actually sure I finished this video and maintained my longstanding promise to myself.
Most boards of major companies are friends of the CEO. In fact many of them serve on each others boards. That's who you want to run a company, people you know and people you can trust and work with. Otherwise you end up with a dysfunctional group like the United States Congress.
Lesson is . Never take your company public
Board consists of Elon "friends"? Really?REALLY?!? Well who will YOU put on board of YOUR firm? Your villans? Your exwife?!?
Theese 2 guys are clowns.
Should it be aout competence? You are paid based on how much you deliver? Deliver more get more... Why should government ignore shareholders and the board of a company?
Hey Bloomberg, I heard about this little idea of telling the truth. Like that the whole compensation deal was a huge gamble on massive returns which nobody thought realistic and would leave him with nothing if he failed. That seems kind of relevant to mention ...if your business is truth.
The judge ruled this comp package void because Tesla’s board of directors aren’t independent. They are close friends and family to Elon.
Elon has created tremendous value for Tesla, but there needs to be checks and balances with all public companies. Key man risk is real and board of directors should be unbiased.
This tremendous value comes from hype, not actual promises. Since model Y, they have not improved their performance one bit and have relied on the false promises of robotaxis and AI to do the trick. They still sell California energy credits as their profit maker and barely make a profit with their own cars. Service centers don’t operate well at all. It’s all smoke
@@user-xb9dx2mp1z credits is only a small fraction of Teslas profit. They’re the only company making a large profit off EVs (BYD makes a small profit) while legacy automakers are still losing money selling EVs.
The street is valuing Tesla as a tech company not just a car company. Model Y is a best selling vehicle in the world despite costing twice a corolla. Imagine when the 25k next gen Tesla comes out. There’s a reason why Tesla has 26 Billion cash in hand and virtually zero debt.
@@tongtran007 No, Elon is forcefully claiming Tesla is a tech company with his fanatics when the market is always considering it a car company.
It’s all a game in that company with future promises but no actual results.
Also, even if Tesla makes the $25k car, it’ll overwhelm their market placement because anyone middle class or that can barely afford would match model 3/model y. By having a $25k car, he has no other market. It’s all a sham on his part
I think that's b.s. communist judge! I would be happy to give Elon my voting proxy for my TSLA shares! I'm sure alot of other shareholders would be happy to do the same!
Pretty much the entirety of the TSLA retail sector would do so. It might be enough. TSLA has the largest proportion of retail investors of any company. I can't imagine why? LOL
Adjust for the probability of payment when it was awarded. Not value when it vested.
First off, I’m a shareholder who voted for the package in 2018 I had enough information on there to vote yes. Greg Varallo Just said that Tesla is just a car company which is completely wrong. You can’t compare Tesla and Elon to all these other companies. Nothing comes close. If the vote was there tomorrow I would vote yes again.
This is an epically frivolous lawsuit. Sets a very Bad precedent for American businesses.
I really do not understand, why people always want what the other has
Yeah I want my neighbours car
Wait, which chapter of Atlas Shrugged are we watching happen in real life here?
Just secured my spot in Xeventy's presale, lets go baby
lol. The judge was out to lunch
IF YOU CANT UNDERSTAND THE ISSUE BEING VOTED ON , INVEST IN ANY OTHER STOCK !
ONLY 5 YEARS OF LITIGATION , I WONDER HOW MANY BIILLABLE HOURS @ WHAT RATE ?
One person with funds like that could buy a personal army.
2:14 it was so large that we looked at it specifically because we could make billions on this case
WOW, there's a first. A lawyer lecturing US about telling the truth! 🤣
Texas has a corporate Franchise tax. I don’t know about Nevada
Yeah. Try mess with that package . That 9 % shareholders gonna loss more if elon have enough with that and just sell all tesla stock. Try him
Plaintiff’s law firm stand to make up to $20 billion on their Tesla compensation win!🤡🤪
They wish.
If that lawyer has a hard time articulating $55b, he's going to have an even harder time articulating the amount of money he's about to cause shareholders to lose.
Just got into Xeventy's presale - the excitement is real. This project is on fire!
the richest man alive is also the biggest loser. Musk ladies and gentlemen
How about this news fact: Elon Musk and the Tesla board reached an agreement on his compensation from the inception of the company when its value was 60 billion dollars. The promissory note outlined that if Elon successfully grew the company to 600 billion dollars, he would receive a percentage as compensation. Presently, Elon has the potential to sue his own company for more than 60 billion dollars and emerge victorious.
A huge never before seen pay package for huge never before seen results. Makes total sense to me, you can't judge his case by the pay packages of other companies when he's one of a kind. He has other companies and has already made many billions so that's the number it took to incentivize him to continue focusing on Tesla. I think that's totally fair with the results he's produced
He made the company worth over 600 BBBbillion. This lawyer should GFY
First a judge forced him to not cancel 44 billion twitter buyout.. then she stopped 56 billion... So much money that would have gone to soace exploration
There wouldn't be Tesla in 2024 if it wasn't for Elon.
Sorry you didn't consider the Key Person Risk before investing in a company.
I'm Tesla shareholder i vote for Elon
Where is this lawyer's pay coming from? He's representing a client that has 9 shares of Tesla stock. In 2018 when pay package was approved, if Elon met all the milestones, the package was worth $2.2 billion. It was only because Elon did such an outstanding job and share price ballooned, that the pay package increased to $50 billion.
Can't the judge look at lawyer compensation and rule that they are vastly overpaid.
The unmistakable stench of anti-capitalist resentment and arguments based on pure emotion all over this issue.
I'd really like to know how this single shareholder owning a piddly 9 shares of Tesla stock is representative of all Tesla shareholders - specially when more than 70% of shareholders voted to approve the compensation package. This single shareholder, his lawyers, and especially the judge in this case are real pieces of work (to put it as politely as possible). I'd also like to know who is expected to pay these grifters legal fees. It sure feels to me that someone is screwing Tesla, Elon and all the other Tesla shareholders. The judge claims to be acting in the best interest of Tesla shareholders. How so? It appears that one single piddly 9 share holder (with a share value of less that $2,000 total) and his greedy ass law firm are the only ones getting any benefit from this decision.
Because 70% of shares is not actually 70% of shareholders! 40% of Tesla is owned by groups like BlackRock and 10% is owned by Elon and other employees. So really, there's only 20% of the public shareholders voting yes against 30%
This lawyer making billions from this suit. Why no one discussed about that?
Elon isn't walking away from Tesla. There will be Justice.
not with democrats in power, they dont like him too much.
you guys are like Elon's hemorrhoids. 🤣
WOULD YOU HIRE THIS TO REPRESENT YOU ? ? ?
That lawyer has never done anything for anyone else. except for himself! Those shareholders who sued are haters and don't have the company's best interest in mind.
Asking for a repeat vote rather than the 'judge' deciding for the shareholders would have been more reasonable.
That's more than Ford or GM Market Cap.
AS IT SHOULD BE ............... This guy is a idiot. Tesla is NOT a car company. Its a AI Robotics company that uses cars to collect data.
Elon my friend, make earplugs out of fishing line sinkers! Live long and free wth Siri Contained!
Why is this so important? I don’t get it. CEO’s discuss pay packages all the time so why is this different and why was Elon musk sued?? Please explain.
Why is this protecting shareholder interests?
Taken down by ex-heavy metal drummer with 9 shares. There is a god.
As a tesla investor it is mind blowing to me that this is the news about tesla these days... Elon this, elon that... Just leave the company so the products can be the focus of the company not freaken Elon...
What is the difference between a normal investor and Elon then .. if his wealth should increase same as others ?
It’s a joke. Elon has single handily made the world a better place . Give him 100 billion in my opinion.
You give him 100 billion. What the Tesla board did was unethical. They’re supposed to act on behalf of shareholders and they did not gets.
Sorry you didn't consider the Key Person Risk before investing in a company.
When the pay package was first implemented there was no push back. The general consensus was that Tesla was going to fail in the near term so to meet the conditions of the pay package was patently impossible. And yet Tesla did not go bankrupt and Tesla did pass all of the conditions required for the package to vest.
For the lawyer to state that Elon would have been amply rewarded by the increase in value of the stock he already owned is rediculous. Lets ask the law firm to giveup their possible multi billion fee because they will be amply rewarded by their standard base fee and see how that swings. Of course the law firm will state that they were at risk of making nothing if they did not win. But Elon was in the same position. He did not get a salary at all. His total remuneration was tied up in those shares. If Tesla went bankrupt he got nothing, no shares no money. If Tesla did not meet any of, what were considered at the time, ludicrous goals Elon got nothing.
The problem with this court decision is that it is using 20/20 hindsight to make a judgement. The package conditions need to be looked at in terms of the conditions that were prevalent at the time the decision was made.
It is like saying the judge should not make any profit's from any investments she holds because she is amply rewarded by her salary as a judge.
I'm with Elon on this one. 73% of the shareholders voted in favor of this package, and the snake in the grass lawyer and his two clients says....naah....that's too much money. I'd appeal the ruling ASAP if I were Elon.
Where exactly was the truth not told? Why did he fail to mention that!?!