Elon Musk Has To Pay Back $55 Billion Pay Package
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Ever heard of someone having to give back $55 billion? Well, Elon Musk just did. This video breaks down the wild story of how the Tesla big boss's mega pay package got a big red stop sign from a Delaware court. We're talking about the lawsuit drama, the court's decision calling out the deal as corrupt, and Musk's not-so-happy tweets about it all.
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0:00 - 2:36 Intro
2:37 - 12:38 The Pay Package
12:39 - 18:44 Was It Fair?
18:45 Musk's Motivation - ภาพยนตร์และแอนิเมชัน
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Tesla sold about 3million cars since 2018. With a 55billion pay package that means Musk is earning $17,741 per car sold since then to present. There's no justification in the universe for that. I want to pay that much less for a car not just hand it over to Elon Musk, just because...
The Aemrican corporate system is broken. How come no one connects the dots between inflation and massive CEO, and investor earnings? That's where you "inflation" is going people. Every dollar extra these people earn is a dollar more you are paying for whatever they are invested in, rent, houses, cars, clothing, food: everything.
A perfect storm is brewing in the United States. Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
These are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The bigger the red candles, the bigger the green ones.
Sounds like Musk needs to have tougher skin
Investing in the market can be a wise decision, especially if you have a dependable trading system that can lead to successful outcomes. Personally, I've been working with a financial advisor for about a year now. Starting with less than $200K and I'm now just $19,000 away from making half a million in profit.
The logic behind paying someone more than your company has ever generated in profit is pretty interesting.
It's paid in stock u fool
Fr. Man transferred 55billion to himself and when they said no he went = Joe Biden
It’s nauseating to imagine humans have fallen so far that they can live a life with a brain that thinks this way. Then call it logic.
He was paid with useless stock. Without himself injecting his soul into it, it would still be as worthless. You can’t change the deal after the fact because the other side got the better end. If so all people that don’t like any contract your in, house or car, you should just void it yourself.
This is a robbery. Put yourself in his shoes and imagine the devil allowing a gang of evil angels to take from you everything you got from selling your soul to the devil.
That judge is the kind of person that will only play a game if he gets to cheat and win no matter what.
They're not paying him cash though, so they're not paying him from the profits
@@okenetrue but Elon has sizeable debt and the interest is enormous he’s gonna have to pay eventually but he’s already been sued for selling his stock
Billionaires losing a significant amount of their wealth is my favorite genre 😂
It's twice as funny when you find out the guy that sued Elon owned something like $2000 worth of shares.
sad because the majority of shareholders voted approval@@TUDORMARCU16
Jealous
@@vaughnreedjr6592 so I take it you're a billionaire?
@mammajamma4397. You don't have to be a billionaire to recognize jealousy.
Ummm, the whole point of going through Delaware was because every savvy business owners know the state favors the business; hence “not normal or fair to all parties”. Why is Elon complaining about this now? He knew what he was doing when incorporate there…it just didn’t favor him this time around.🤨
Shareholders overwhelmingly voted for his comp package. Delaware is home state to Biden who receives large sums from U.A.W who are against Elon
Politic by the Demonrat
"What are the odds that out of all people in the world that you can appoint to be the general counsel of a worldwide multibillion-dollar company the most qualified person just so happens to be your divorce attorney?"
The answer could vary widely depending on the divorce timeline
There is a corollary to "divorce attorney" specifically that doesn't paint a good picture of independence: Divorces represent very high legal fees corresponding to some of the highest financial ties in business, particularly for millionaires.
Here's the weird thing. I think most of us know that matrimonial law and corporate law are very different beasts, even if we haven't actually studied them. This raises the obvious question, why did the divorce lawyer agree to serve as a corporate attorney? Shouldn't there be a breach of ethics there somewhere?
A corporate law skill set and experience, at that level, is as different from a divorce practice as a brain surgeon is from a plastic surgeon.
I'm sure there is difference, but people in business end up in all kind of situations, from the wife publicly appearing and making it a concern of the lawyers present, who could offer to divorce you themselves, to also having a bunch of resumes from past applications that will eventually get recycled for consideration and finding out some early experience in a different practice of law, and calling them and asking if they would because there was nobody else you'd reach since divorces don't happen every other week.
Lots of scenarios with an overlapping timeline, just a bit of imagination.
The concluding opinion of the Tornetta case seems to rule out overlapping timelines
By the way, divorce lawyers will have some ethics and decline corporate law positions, since that's more extensive and changes often, but corporate lawyer's particularly with some long careers and past experience in separations will not face an ethical dilemma divorcing someone, particularly not a millionaire/billionaire highly profitable one-time gig, because that side of the law doesn't change very often.
Lawyers made a killing all from a guy with 9 shares
The metal drummer was more inciteful about the Musk pay package that all of Wall Street and the Business media! Tesla shareholders will benefit from this ruling as it reduces delusion and increases the per share value. In the short run Muskites might worry that Musk might leave, but that is probably the best situation for Tesla -- ridding Tesla of a high profile troll that mocks the very customer base for Tesla will ultimately prove the better option!
It was a class action
cuz US laywer is stupid to understand Constitution but ppl are not stupid watching how US is killing itself
@@Raptorman0909 "ridding Tesla of a high profile troll that mocks the very customer base for Tesla will ultimately prove the better option!" Basically all of your opinions are formed by just not liking the guy.
@@mrb152Basically all of yours are formed by liking a guy.
The market correction of Tesla stock will be brutal.... that cybertruck will bring millions in lawsuits and problems.
Anything that makes InvestAnswers cry I’m here for
lol. its already been correcting, slowly, but surely. TSLA has been a wonderful wealth generator, I've never played the upside on it and always played the down, but its made me significantly wealthier for all that volatility over the years. I've always done the "deflate the hype" play, and it has worked out. real question is, how much of that hype has to be squeezed out? I would submit that if you're piling on now, you are a little late to that party (short of a scenario where it collapses, then there is all the juice left to squeeze).
Whoever bought it serves them right; and ugly and worthless piece of junk!
No worries. He can sell carbon credits or get direct deposits from the govt like normal.
@@AlexanderTheGoodEnoughgood luck. People delusional. Watch it go to the moon for an obtuse reason.
This compensation package is larger than the market cap of GM, a company which makes significantly more revenue, roughly even profit, and a much higher shareholder equity. I still don't understand how investors can value tesla as anything more than a car company, as their "revolutionary" self driving tech isn't projected to come out for another decade, and tesla is rapidly losing net margin and market share to other companies in the car space.
you havent done your research. Tesla is pushing towards autonomous taxis. so basically if Elon does battry cars, and you can order them on your phone, and they are cheaper than gas cars per mile.... then there is no need for you to buy a car from GM. Also Elon is building robots to do your job, and they are building the AI intelligence for the computer to compute the best way to do your job. Thats why tesla so high
Bro I see Elonstans that think they’ll have AI controlled robots doing all the chores in their houses by 2025. We’re not dealing with critical thinkers here. We’re dealing with suckers and cultists.
Speculative investing.
If he increased the valuation of the company by 1.9 trillion, then 55 billion is merely a 5% raise.
Tesla makes more profit per vehicle sold and overall has much more efficient production lines. In fact all automakers acknowledge that Tesla has the best production lines and are scrambling to improve their own. The way Tesla is operated is also fundamentally different and less top heavy like the old bloated companies, this has been key to its rapid success and outperforming the old arrogant companies.
Tesla is expected to continue expanding its lineup and sales volume in the long run and thus eventually will overtake GM in yearly net profit. Based on current growth rates, Tesla will make more annual profit than GM within a few years at most and in theory should continue to grow faster than GM based on the fact Tesla literally knows how to build cars better and faster with more profit.
I’m not a hardcore fan of Tesla or Elon but I just look at it objectively… seeing some people constantly hate on the guy unnecessarily and make emotionally charged anti musk statements is perhaps just as lame as the stans.
Tesla had been trash talked for years ever since 2018 I remember almost every article saying Tesla is about to fail Elon is done for blah blah, now he actually pulled it off and people are still somehow hating on him 😅
Lastly, Elon has been politically polarized and now stands as a pro republican figure. He has routinely posted things / said things that undermine the democrats public objectives and thus they have increasingly identified him as a threat, the less money he controls the better for democrats. Countless Democrat affiliated corporations are actively plotting against him. U fortunately for him that is how it works In the USA, if a billionaire speaks politically he will be targeted.
Reminds me how in the old feudal systems of Europe, the insane imbred king was surrounded by the powerful lords under his rule. They gave him the power, the money and put up with his behaviour, since they knew they could play it in a way it all benefitted them. If you notice for how many generations people put up with that nonsense at the time, you might argue it's a tried and true system.
For the feudal lords.
Yes the feudal lords are trying to silence Elon.
Cybertruck: don't let a bird poop on it or it'll ruin the finish and watch out for the sharp edges plus finger removing doors
either get a cybertruck or be a stupid. got it.
@@davidanalyst671it’s ok pal. We kinda had a feeling conservatives couldn’t read before you commented.
@@one1blue Its funny how everything is so political that even liking or hating or musk is political. America is going down the tubes.
@hdaviator9181 musk is political, in that he amplifies and cheers on America's fascists.
Every Tesla says to clean off bird droppings. I have a car I never wash but I still clean them off because I've had it damaged the clear coat.
That $56 Billion has not been paid yet. But Tesla deferred $6 Billion (of $12 Billion eligible, if paid) in Q4 2023, already. And the shareholders will lose 10% of their investment, too. That was probably not communicated to them.
Enron Musk at it 😂
Nice👌
Shut up, greedo
Thats a new one! Ive been hearing Elmo or FElon recently. Enron Musk is an amazing nickname
Corporate systems in America are designed to extract value OUT of companies and INTO individual's pockets. Muskrat is a genius in the sense that he is great at exploiting this
If he was a genius he'd get to keep the money, he's just a sad, rich, a-hole with a god complex.
Isn't that why you work for corporations? They pay better than staking out on your own?
the general public also trade stocks based on the performance of said evil companies. Even if we dont do it, other countries will. And they are plenty of more insidious players who are not a narcissist idiot or enjoy the spotlight like musk. It IS good thing having someone so stupid uprooting the entire discourse about billionaires.
But I think AI will come up with a solution in maybe a hundred year or so. Hopefully
@@samsonsoturian6013Yes. The difference is the rest of us have to settle with getting compensated less than the value that we bring to the company.
currently salivating at the thought of musk sabotaging his own companies in a ketamine-fueled rage
"Ketamine fuelled rage" is the funniest thing i ever heard.
😂
On the contrary, not only will the package be reinstated but he may get double voting rights (25%) to regain more control over the company.
Phillip.
@@philliptemple9841 it’s so weird you say that considering there’s no update on any appeal at all and the lawyers that brought the suit taking his money are now waiting for theirs LMFAO nice try tho
@@ZeroN1neZero raging on that ketamine, huh?
A drummer with 9 shares brought down musk-ratt i love it
The lawyers used him as a proxy for a big payday
Brought down? Didn't major in math huh?
Phillip.
when his neuralink installed on all the shareholders and board of directors he doesn't need any more tranches
😂
LoL scary but truly what Elon is thinking right now
dont give him ideas
Lol that handshake at 3:46
how did you even notice that? lol
Real masculine, isn't he!
what a Chad, never let $55 billions make you lose sight of a BS handshake 🙌🙌🙌
Its a mason's handshake... you a conspiracy theorist and anti semeric now. Congratulations
@@dollarcostbackpacker1226
It's considered a Mason's handshake when it is between two Masons!
Market cap has nothing to do with how much money the company makes. Tesla is worth more than all other car companies combined but is only %3 of cars on road, that is a bubble!
Cuz he pumped the stock by saying crazy shit and became a twitter influencer. The world is closing on him now that he failed to deliver on a lot of the promises. He made a lot of people rich. That’s why he’s not in jail yet.
I like how you are a capitalist but you are not an amoral idiot.
Just an idiot
WSM is truly the gateway drug to socialism
this video sucks. the ending is a character assassination of elon
This comment was a character assassination of DEEZ NUTS@@davidanalyst671
@@davidanalyst671lol. Elon doesn't have any character left to assassinate
The real suspect Factor is that this is all based on market cap in the first place and not production numbers not revenue not growth of the actual business just how many fanboy cultists you can get to invest
I know I dont understand all of the intricacies or know/care much about Musk and Tesla, but honestly the reasoning behind taking his compensation sounds like utter BS to me
He didn't receive the $55 billion yet (in the form of share options, that he can't sell for 5 years). The unAmerican decision of the partisan Democrat appointed Delaware judge should be overturned on appeal. The Tesla BOD will reaffirm the decision of the 2018 shareholder approved comp plan when they make Elon's next comp plan.
orangeman gone, sowwy, so sowwy. 😂🤣
I agree is a political
Lol guess the cost savings of incorporating in Delaware didn't pan out.
it was joe biden's friend, and joe biden hates elon for not using union labor.
They do, the problem is judges in all 50 states would agree with the decision
Here's a conspiracy theory about Elon Musk: he registered the company in Delaware for tax purposes, failing to realize the precedents in Delaware court similar to what happened to him and at no time sought out anybody other than a yes man to advise him about the risks. Hence him typically flipping out on his echo chamber ("don't register a company in Delaware")
He registered in Delaware because it's the best place to register a legitimate, honest business. What he didn't realise is that the infrastructure necessary to run honest legitimate businesses efficiently are the same things that make it harder to do whatever the fuck he wants: rule, law, and the courts and people that enforce them.
You appear to be mentally Ill
@@Ealsante except he didnt register it in delaware because he wasnt the founder of the company
@@Ealsante Eberhard and Tarpenning, the real founders, registered there, because before Musk took over, the company was not a scam.
Sorry, Musk became CEO in 2008. The company IPO was in 2010. So, Eberhardt and Tarpening were long gone by then.@@zaiyaad115
World's highest paid influencer...
And the world's most overrated influencer too... Or just your average garden variety Pump N Dump scamster...
😂😂😂
Elon.. what a fall from grace… remember he pushed out two Tesla engineers who founded the Company. Another Ray Croc…
And then shot the Tesla roadster that was owned by the founder into space.
His shoes are lame
And then called the guy trying to rescue kids trapped in a cave a pedo because he got his feelings hurt when it was pointed out his submarine idea wasn't going to work.
Grace? What grace?
Don’t think there was ever any grace
I can't believe that one dude having 9 shares was like. "Wait, everyone is ok with 55 billions going to him? That's outrageous, if nobody is going to sue him, i'm going to sue him myself." And he just won, WoW o.O
The operational milestones are important because it prevents the CEO from just focusing on raising the market cap for short term gains and also to prevent the company from benefiting strictly from macro factors.
For example if Powell dropped rates today from 5% to 0%, the market caps of all US companies will instantly rise.
except market cap is often outright garbage. look up Horizon Worlds. less than 400 daily users and valued at a trillion dollars
I could be mistaken but isn’t the statement that Tesla stock would increase 10% per year because the general stock market increases by 10% per year somewhat disingenuous? By that logic, every stock in the stock market would be a safe bet because they all go up by 10% per year.
Moreover, I saw some comments about how the pay package is higher than the profit Tesla has generated. It’s not uncommon for tech companies to be valued based on what markets believe the company is valued at (as with any other stock) despite the lack of profits (common to other tech stocks).
That is not what that statement meant to indicate. The question was how valuable Musk was as CEO. If the stock market rises by an average of 10% as a whole, that means that an average ceo would be sufficient to get that 10%.
The average CEO pay of listed companies earns somewhere in the single digit millions per year, so the question isn't if Musk raising the stock x% over 10 years is worth 55b, but if musk raising the stock x-100% is worth 54,9b, as the 'first' 100% could be achieved by a ceo costing 100m or less for that timespan.
It's an important distinction, as it significantly reduces the special gains he brings over a bog standard off the shelf ceo so to speak.
I wouldn't say Musk is an average CEO in any respect. Especially considering the investment (not just monetary) in model 3 production. @@reappermen
Correct on the second point. That talking point is incoherrent, of course the stock is worth more than the profits. Literally any stock for Jeff Bezos would have been more than Amazons profits because Amazoz didn'ty make signficant profits.
Hypothetically, what will happen if Elon announced he was leaving Tesla tomorrow? Is the share price likely to rise or dip? They will find a way to give him what he wants.
exactly. and WSM is smart enough to know this, but he is posting elon porn and propaganda at the same time. Downvote this crap.
He now wants 25% ownership because he sold his shares but still wants control
This is actually an extremely important point! I always thought the biggest risk to any of his companies was if he walked out and got hit by a bus tomorrow is really no one that can fill his shoes and that's a huge risk on Tesla SpaceX and Twitter investors. If Tesla ends up with a new board and they don't pay up what we will be seeing is a new version of when Apple got rid of Steve Jobs and thought they could do it on their own that he wasn't very important boy did they learn one person can be extremely important and valuable as a leader. Musk has all the leverage here..
@@Ryanandboys you mean the Apple which makes monstrous profit and is one of the two most valuable companies in the world and has grown its market cap and sales massively since Jobs decided to ignore medical advice and let cancer kill him? Lest we forget he was a moron and also departed from Apple twice.
That is what you worry might happen to Tesla if Musk goes?
Sub $400bn market cap to only $2.9 trillion.
Tesla stocks are pumped hard by Elon and friends. Just make some crazy claims and people threw money at him. Full self driving from California to New York ready in 2017 lol. Imagine Apple or any other company promising a tech and did not deliver.
Tesla won't be anything near what it is today without musk . Give him wat he wants
Not a single real Tesla sharehold is mad about their 10x return even if Musk got a commision for it. Waiting for the appeal where this judge will be smacked down for this idiocy.
What 10x return? Not a single cent has been paid in dividends. Not a cent. There is no return. For many, their investments are worth half what they paid and there's no getting away from that.
Please check value of company and stock in 2018 versus now@@davidbrayshaw3529
@@davidbrayshaw3529 dividends and price appreciation are both part of net returns.
the loss is from investors who bought high recently long after the milestones were achieved and held, but they are also "real investors"
so you're both wrong
@@davidbrayshaw3529You are factually incorrect.
Phillip.
@@philliptemple9841 Please explain. I'm fascinated?
This is actually a great and thoughtful video. I'll admit before watching I was sympathetic with Musk, but now I can't even believe that was ever the case.
Turns out when you stack your board with people who see their position on the board as a gift from you, they'll be inclined to repay that gift. Who knew, lol.
Consider that all major automotive CEOs would receive 0 dollars from the same compensation plan over the same period. Yes the comp was extreme, but so were the results.
@@kristianphilipsen I agree completely. That’s what I don’t get about Elon. He’s capable of so much greatness but yet arguably the easiest parts of his job he sometimes misses.
Price of greatness perhaps 🤷🏾♂️
@@Christopher-zr1ib i agree and I don’t like everything he does. However I find the case absurd, the plaintiff had 9 shares. He’s suing because in his mind a 10% commission on a 10x return is unfair for shareholders, it’s bullshit.
Sure the board is agreeable to Elon, but fact is most CEOs wouldn’t take the same comp package if it was offered to them.
@@kristianphilipsenIt doesn't matter if the plaintiff has but a single share. He owns a piece of the company. The compensation package being approved was done so in direct opposition to the best interests of the shareholders. All of the key information was purposefully obfuscated from shareholders because this was an insanely stupid compensation package.
@@MuShinnen Tell me exactly how the comp package wasn´t in shareholders best interest when 70% approved it.
Elon got 50b in comp for meeting production targets and growing the company 500b. Shareholders got a 10x on their investment, as a shareholder myself those are absolutely favourable terms, even if he´s compensated in dilluted shares.
It´s like telling someone you´ll 10x their investment in 5 years and in return you want a 10% commision. No one in their right mind would say no.
Bear in mind the comp package would have paid nothing if the stock stayed flat also. The same comp pack would have paid nothing to the CEOs of all major automotive car companies.
Regarding key information being withheld, what information? Did they change the comp pack after it was approved?
Elon saying "don't incorporate in Delaware" is just hilarious on its face. Delaware? Literally the most pro-corporation state in the entire country? It's telling of how greedy he was that the *Delaware Court of Chancery* said "you're being too greedy".
The compensation package was 2.6 billion not 55 billion..the current value is that amount because Elon hit the target agree upon..considering that 2.6 billion of a between 49-55 billion company in 2018 for a 10 year contract isn’t far fetched..
If Twitter goes to zero, Elons loss over the last year or so is close to $100 Billion… He has always ran his companies this way though, have no regard for fiduciary duty to investors, and the practices are in effect insider trading.
In the time that Musk haters have been throwing temper tantrum after temper trantrum about Musk's behaivor, Tesla has contrually been one of the most valuable companies in the world. Seems like he's fulfilling his duty just fine.
There is no other CEO who has done better for investors. Period
"Hey I'll 10x your money but i'll take 5% from that as pay"
"Okay"
-he actually does it
"Nooooooooo not like that my 9 shares!"
All those loans he has borrowed against that to finance spacex and twitter lol😅
That has myself worried more than anything for Artemis. Blue Moon or the National team proposals looked a lot more realistic than using Starship.
Space X is not gonna be part of NASA soon. People figured out that it’s vaporware and hype.
Ah yes national team with their cost plus contracts.
Ah. I always wondered how Murdoch got Musk to do his bidding - ah yes quid pro quo!
The bottom line is: Over 75% of shareholders voted in favor of the performance-based compensation package. A judge second-guessing the overwhelming majority of the shareholders is a very dangerous precedent and unethical.
But you also have to consider that he withheld info from the stock holders
I'm guessing that if the reformate in a legal disclosure that the stock holder will still vote yes. Probably less than 75% but more than 50.
And at the time, he was 20% of the shareholders. The rest of the board, the Teslarazi? who knows? Corruption, my friend, corruption.
It is better to be a cult leader than an actual entrepreneur
Elon doing real things making the world a better cleaner place
This channel has improved a lot, I remember when it was just a voice over for Wikipedia articles
Haha what are you talking about?It still is except he got a subscription to financial times
I suspect that if Tesla lets Musk go and they bring in an experienced auto CEO that Tesla will do just fine. They might even get rid of that horrendous cyber truck that should never have been made. The court case also brought out that the Board never proved any causality between Musk and Tesla "success". So sad.
I mean, a fundamental part to the success of our financial system is the trust we have in corporate shareholder agreements etc. To have a judge overturn an agreement because of obvious political reasons, is something that damages the reputation and trust that shareholders have in the system.
If people didn’t want him to get that payout they should have A: never agreed to it and B: never allowed Tesla to get so big.
This ruling will likely get overturned because it blatantly fraudulent and politically motivated. I am disappointed that so many lower class Americans fall for anti republican propaganda
@@QuantumDynamics Agreed. Look at the number of Demcorats who get away with outright theft while being beloeved in the media by Democrats: Elizabeth Holmes, Bernie Madoff, SBF. Yet you'll find more democrats seething constantly about Musk, who oversaw one of the biggest corprate success stories in US history while actually making the most popular electric car in the world.... just because he doesn't ban people they hate on twitter.
Wow How Wrong
Aggressively growing by taking chances and then de-risking with lower volatility is a very common plan to achieve and maintain success.
Do people get particularly close friendships with divorce attorneys specifically?
Is it because they helped get the crazy person out of their lives?
Is there any additional subtext that I'm not getting?
The answer appears to be no FWIW
«Maron joined Tesla in 2013… Before joining Tesla, Maron was Musk’s divorce attorney. Maron neither socialized with Musk nor considered himself a friend of Musk when he worked at Tesla»
Later grew attached and "held back tears" for leaving Musk
There is a corollary to "divorce attorney" specifically that doesn't paint a good picture of independence: Divorces represent very high legal fees corresponding to some of the highest financial ties in business, particularly for millionaires.
While the plaintiff’s lawyers are opportunistic weasels, the pay package was not in the shareholders best interests.
The lawsuit was filed in 2018
Why not? What do you see that 73% of shareholders don't?
@@kebuhrogersto be fair, tesla shareholders are at the bottom of the barrel in terms of having common sense.
@@kebuhrogers As Patrick Boyle had pointed out, the pay package exceeds Tesla’s profits. While he met the criterion of success for the pay package, it seems questionable from a more long term perspective. Additionally, it appears to not have been an arms length negotiation. That leads me to believe that it may not in shareholders best interests.
Specifically, regarding perspective of share price, as I tell my financial advisor, I don’t like how high the PE ratio is for the entire market. If profits are not there, then people should be concerned. I am not saying Tesla will not be successful, but I have a more cautious perspective.
@@lonyo5377 What is your point?
Edit: I mean this respectfully.
Great investigation and analysis, but compensation committees are always incestuous. IMO, event at 55B, Elon's compensation is more reasonable than most CEOs. His presence was 100% the reason for the stocks 30X growth over this time.
His compensation is more than the company's total net profit over its entire history. Is he paid to run the company or just to be a market manipulator?
@@jasontiscione1741 good point.
@@jasontiscione1741$0 cash compensation. Shareholders have made hundreds of billions off his leadership of the company.
Why not? YOU do not give a shit about how unfair it is that the one who does the LEAST PRACTICAL USEFUL WORK gets paid MILLIONS time more than all the useful workers on the planet. Tornetta just USING THE LAW TO HIS ADVANTAGE just like Musk and Bezos and billionaires have always done.
@@jasontiscione1741 its tied to stocks though. if the company goes down the compensation becomes worthless
Elon contributed to the success of Tesla more than anyone and he took a lot of risks for Tesla to even exist . Why it's ok for investors to benefit exponentially and the actual business that put money on the business and worked on the business n said pay me if this company is very successful .
Oooohhh poor Elon! ALL he just wanted has to sabe the world!
Yeah. And now he can't save the world. I'm gutted. I've bought $1m worth of Tesla stock, two model 3's, I'm on the waiting list for a robo taxi, a cyber truck, a robot, a trip to Mars to the new colony, a brain implant and a roadster, but the Delaware court has shattered my dreams. How dare they!
@@davidbrayshaw3529 oh poor Guy! If i had one of that precioso NFTs i would've donate to you but i was one of those non-believers! Now i can't Go to the moon and you can't Go to Mars 😢!
I wonder why Americans never use "oligarch" to people like him. Its literally 90s Eastern Europe stuff
Just googled the definition. Doesn't apply. I think it is oligarch type of insidious politicians and characters trying to muzzle Elon
3:56 correction, that would be "the board of hot model stock footage directors".
Exactly, such as raising debt to finance stock buybacks which have become increasingly common.
I wonder what this is going to do to his psyche. We all remember him pandering to Mr. Cook when apple threatened to remove Twitter
18:00 the discussion started with the premise that you should pay your CEO to motivate him, which in turn should increase the chances for the good outcome. So the expected value changes from the simple average to weighted average.
Now we turn back to whether it was truly necessary or that he is so overpaid that the expected value doesn't actually increase or may be even lower.
"They're negotiating against the CEO. Their goal is to set the compensation as low as possible while still being attractive enough for the CEO to take the job and be motivated to work hard."
Maybe I'm being overly technical, but purely speaking this is not correct. In a very oversimplified way, it's a fine explanation, but I don't think this is the best description.
You had it correct in the sentence before when you said "The compensation committee is supposed to work for the best interests of shareholders." and could have left it at that, because that is what the intended purpose is.
Higher compensation for higher targets IS potentially in the best interests of the shareholders. An under compensated executive with lower targets is not necessarily in the best interests of the shareholder. Though it may be that at the end of the day, the committee ends up negotiating against the CEO because they believe they provide more value than they actually do.
FWIW - I enjoy your videos and have learned tons from them. But just something to think about.
Higher targets also increase risk-taking incentives, which is a double-edged sword. You generally want the targets achievable without needing to risk the company's survival on a gamble.
Why would they agree never payed a cent in dividends and now the Vapor ware salesman wants 55 billion from a company that only survives through govt handouts that he has taken from over 400 a share to 190🤣🤣🤣
During that time, the value 20x'd. Few thought Tesla would survive, let alone actually accomplish the plan.
Replace " various " with "absolutely impossible ".
Been your subscriber for over 3 years now. Love all of your vid, except this one. I don’t have Tesla shares nor drive tesla, but the Elon did do a great job for tesla shareholders. For you to sound so bias and call the tesla BOD “his crony”, is a bit bias. So how can we, your viewers, take your view as unbiased.
Biased indeed
Elon was not awarded the shares so he does not need to pay anything back.
No, the options get canceled. No broker will take them
He does not need to give back anything....he never got them. The package was not shares but the option to buy the shares at the price they were then in 2018.
This is an anti Elon channel, what do you expect but uninformed ignorance when it comes to him?
If that’s the case , maybe he shouldn’t have sold a chunk of his shares in the first place , especially after saying he wouldn’t
Did he buy them?
He already got some, remember when he had to pay alot of tax for selling shares to get the money to buy the preferential shares he got as part of his pay package? Yeah, it happened.
@@santamariamarvyhe exercised 0 of the options from this package that was approved by over 70% of shareholders.
Idk i think creating the largest market cap ever deserves something like this. How can a shareholder possibly claim unfair treatment you 10x your investment in like 3-4 years
Could you make a video about the Bank of Credit and Commerce international scandal?
CEO’s Stacking a board? Happens everyday all the time. There’s nothing unusual there. Think Disney. Anyway, it’ll be overturned.
Elons pay package was 250 times larger than the next highest CEO comp package. We’re not dealing with Disney here, think Charles Ponzi.
And if it gets overturned the only people hurt by it are the Elonstans that will get left holding the bag as he dilutes there shares into nothing.
Yea, nothing unusual here, just Biden trying to cuck him. He'll wait till Trump is in office then appeal.
It sure as hell won't. I bet my life upon it
IMO the premise of being compensated as a CEO seems less in the know of future earning or "insider" type stuff. You mention Elon's knowledge only seems some benefit when Suggesting a pay scale computation when so heavily based on future. BTW in straight insider stuff. no guarantee of outcome, just better odds
What... you are telling me that there is no strict legal protocol for the compensation packages of corporations that representing milestones? Where are the milestones for workers, just a sad a frame on the wall? They deserve millions too. Who represents the workers at the executive board?
And how can they prove the CEO was the one who made the company "profitable" on the balance sheet and not an external source, like a leyman brothers 2.0 making a play or a worker's idea stealed by a manager that increased drastically the quality of the product? What if it is just stealing the merit of the workers?
Tesla workers all get stock options. Unions should fight for profit sharing and stock options that way every one is aligned and general prosperity will increase
This is probably the most informative description of the Musk Pay Package controversy! Thank you for your factual in-depth analysis.
"Or way the world's largest pay package obtained by corrupt means?"
I laughed.😂
I don't understand why people still buy his products, when the quality control is so bad and his promises are hollow.
Your listening to media lies because Tesla doesn't spend hundreds of millions advertising like other car companies.I make a point of speaking to people I see with Teslas to get there opinion. They all rave about how great the product is.The facts show that Teslas are also the safest vehicles in the market. Plus no pollution. Tesla model y was the best selling vehicle globally in 2023 gas or battery
The best explanation of this topic I've seen so far, congratulations!
You really like propaganda dont you. At 17 minutes, WSM puts up a chart saying elon's pay hurts tesla's stock. By that same measure, why don't we get rid of all the employees, and elon, so the stock can go as high as the moon.
A lot of context is missing from this video, honestly embarrassing that it’s so one sided.
It's crazy that no one thought it was weird that they're giving Elon about 12% of all the revenue they had ever made selling cars(if not more if the average price is lower than the median).
This video really aged well!!!! Pay packaged approved by 73% of voters in early June 2024!!
So if the price plumments does he have to pay anything back. The stock only reached a trillion mkt cap becasue of twitter and social media.
Elon musk out-efficiencied Toyota. mic drop.
Maybe the milestone should be set to when FSD works, when Tesla taxi comes out, convoy mode works, Tesla semi full production, cybertruck full production.
Anyone know how Elon spends his money? Or what he's done in his life....any meaningful accomplishments?
Would you trust him with it or the politicians keeping it from him.
He pumps out babies that he doesn't father just like so many others from his... ( I'll let you figure it out).
He does great things for humanity
It’s easy to spend 20 billion in one lifetime. Whoever is saying otherwise are just looking at it in normal lenses of spending. If you buy 10 super mansions and 10 super yachts 20 billion will be spent in 10 years just in the upkeeps of those items.
I learned a lot more from Matt Levine in his Bloomberg Opinion column “Money Stuff.”
Well I hope the same rules apply to Blackrock, Vanguard ect. This was politics pure and simple, someone bought a few shares to start the case.
Oddly specific whataboutism. Who said they're paid in options? And this is public info so... Nope, Larry Fink receives most of his pay in shares, not options. Jack Bogle is dead so there's no overlord at Vanguard that owns everything, but the current CEO is paid seven figures in shares and sallary.
He hasn’t even exercised the option so has nothing to payed back..plus he wouldn’t even sell them for 5 years once exercised..lastly the 13% ownership he how has is after taxes and option for loans etc
Payment plan an option?
_"How to pay yourself 55 billion"_
*Me:* _"Is it possible to learn this power?"_
That depends do you want to do it legally or illegally?
Great video mate. Very well researched and presented.
Would love to see a follow up on all the vapourware he announced to inflate the stock.
Didn't he force the founders of Tesla out of their own company?
Yes and then shot the roadster that was promised to one of them into space
One of the guys was just a terrible business person and was tanking the company, it wouldn’t have survived if he was still there
@@tobiasash9281 musk isn't much of a business mastermind either. He's already sank Twitter just so he can troll trans kids online without getting banned.
Would this 55 billion even cover that lose?
@@onesungheroHe's a very good businessman when it comes to tech! Although being good in one industry doesn't mean you'll be good in EVERY industry.
@@GooseCee so you're saying a social media platform isn't tech?
He's not good at anything other than claiming the accomplishments of others as his own. And inheriting large sums of money from his apartheid daddy.
Hand me millions of dollars and I'll be a billionaire in a few years too.
If i were that smart id appoint my friends on the council too
The guy who filed the lawsuit only owns 10 shares lmao
9
//dude was playing chess on an A.I. level
seriously wtf with US man....
WSM dropping HEAAATTTT
Why people who already so much money who keep wanting even more money. . .
Kudos for the pronunciation of Ira E.!
All the jelly from the successful people in the comments 😅
The board might give him a considation prize of converting his shares into founder shares, giving him the extra voting power he asked for
The biggest problem is that they cannot find a reason how the shareholders were damaged. I mean if a CEO comes and says it will 12x the value of the company and all he wants is more equity which he can't sell I would be glad to vote for it. I cannot see how it is a bad deal for shareholders
Was a great deal for shareholders
All CEOs and top executives are extremely overpaid. They all need to start giving back.
He doesn’t think about his pay package rather the board should be, anyway he was going after more ownership
People still dont get it share price value is perceived value than there is actual value that puts in assests&debts tesla on its isnt even worth 50 billion selling only 2million cars then the CEOgets 56billion?
13:45
Uh no? I would work extra harder then?
That is too bad man
Elon musk wont 'sabatoge' tesla to even say that is absolutley absurd. Elon Musk knows that his reputation and financial capacity with Tesla is far more important than his other ventures.
I turned from a Musk skeptic to someone who sort of enjoys him off of the abolutely stupidity of his destractors. They;'re completely deranged in their unfounded hatred of him.
@@mrb152 Are you referring to the person who made this video? It seems fair investors don't want to dilute their shares and weaken their holdings over Tesla because the CEO decided to give himself a 55 billion dollar bonus as incentive.
Cracking video, WSM. One of many on the binge-list today. Keep up the great work.
PS would love to see you pull the numbers on the expected cost of going to Mars - relative to deploying the same capital on a risk-adjusted basis to preserve humanity on Earth, eg defensive costs to mitigate asteroid / nuclear winter etc; in addition to what that capital could do to improve wellbeing of people generally and thus reduce human-based existential risks. Of course, it's Musk's money, but if he's claiming it's to 'reduce existential risk', then I have little doubt going to Mars is the absolutely least cost-effective measure of all. (Know you've touched on the cost and risks of Mars generally, but would be interesting to see in comparison to Earth-based existential risk mitigation costs.)
It's possible to spend 1 billion dollars???
Governments spend Trillions more than they collect. Google deficits
Looks like Musk is letting this one go, he hasn't filed an appeal.
55 Billion is ludicrous! Even 1 Billion! That is 1000 times a million dollars! Think about that!
He's doing great things for humanity with that. Look at all the Trillions governments spend with no real results
Above a level of wealth it's not money, it is about power. We don't want an autocratic government, but we still want some benefits of autocratic efficiency over large portions of the economy, so we allow private ownership over the means of production. If no single person had a controlling stake in Tesla, Tesla could instead be nationalized, or owned by workers, or more likely collectively owned by a bunch of smaller investment firms. Each alternative ownership structure comes with advantages and disadvantages.
Stop reaching for the stars, charity starts at home! Do good for your fellow men. Much more rewarding!
He's doing great things for humanity and leading the way to a cleaner world