Tesla Shareholders vote on Musk's $56 Billion pay package Thursday June 13 2024

If you owned Tesla shares how would you vote on Musk's pay package?

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    13
Dolemite censored

Dolemite censored

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That's some package. Musk's original payout of $56 Billion was voided by a Delaware Chancery Court Judge on the grounds that it was unfair to other shareholders and that the Board awarding the payout was too subservient to Musk.

Now, Tesla shareholders have been asked to vote to approve the payout. Some major Tesla investors oppose the payout as excessive, not in the company's best interests, that it would dilute shareholder value, that due to less than favorable market conditions it would be a significant drain on capital, that Musk is not fully focused on Tesla's challenges.

Many shareholders support the payout, saying Musk has delivered on the goals set out in the original incentive plan, and denial of the payout would cause Musk to lose interest in Tesla in favor of his other businesses.

I don't own Tesla stock. If I did, I would vote no. I think the payout is excessive. Musk is now a part-time CEO, has subordinated his focus on Tesla's business in favor of X (Twitter), has lured experienced Tesla engineers to SpaceX and Nueralink. Musk has also threatened to sever AI development from Tesla. Tesla is also missing its target deliveries and the stock price has fallen from a high of $299 to the current $173, a loss of 43%. Musk is spread too thin and not laser focused on Tesla's business at this time.

Tesla should get a payout of some amount, but not $56 Billion.

What do you think? How would you vote?
 
Didn't he promise a cheaper EV in January? Yes he did. Not happening. Cheapest Tesla 39K. Instead of goofing and being the manchild on X, might want to focus on China cheap EVs. For now they are not great, but for how long? I would not buy a Tesla, but it is not price. Too long to charge and the range and still use the grid to charge. Hybrid a better option than a Tesla. I have one of those with 200K miles on it. A Lexus.
 
is the 56 billion buying him out of his shares? if it's just for his work as CEO or whatever his title is.... yeah pretty excessive.
 
Bender said:
is the 56 billion buying him out of his shares? if it's just for his work as CEO or whatever his title is.... yeah pretty excessive.
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It's a payout not a buyout. He claims this is due to the increase in stock price from when the deal was first struck.
 
Dolemite censored said:
It's a payout not a buyout. He claims this is due to the increase in stock price from when the deal was first struck.
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and people agreed to it? fucking wild. we live in a fantasy land where nothing is real.
 
Bender said:
and people agreed to it? fucking wild. we live in a fantasy land where nothing is real.
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The Tesla Board at the time agreed to it. A judge threw it out as unfair to shareholders and excessive. Now it gets a second chance with the shareholder vote this Thursday.
 
It’s what the market will bear. Musk negotiates his price with the board, not the shareholders. If he doesn’t like it, he can walk. If they don’t like it, they can dump him. Forcing him to work for a salary he doesn’t have control over is a bit too much like socialism.
 
Mofo said:
Musk negotiates his price with the board, not the shareholders.
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The board was in Musk's pocket at the time. That's why a judge threw it out.

Musk is not completely focused on Tesla's business now and it's glaringly apparent. This is a shakedown for billions he doesn't deserve. Fuck him.
 
Dolemite censored said:
The board was in Musk's pocket at the time. That's why a judge threw it out.

Musk is not completely focused on Tesla's business now and it's glaringly apparent. This is a shakedown for billions he doesn't deserve. Fuck him.
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Doesn’t matter. If investors, and by extension, the board, like performance of the stock under Musk, then a high salary is negotiated with him. Otherwise, they dump Musk (or he walks) and they risk their investment with the next CEO.
 
Dolemite censored said:
That deal was thrown out by a judge as unfair to other shareholders.
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lifeisntfairsnapes-ani.gif

Judges should only be able to rule whether something is legal or illegal. IF it's legal... so what? How can you legitimately say something is unfair if it's legal.

Whiny judge... :rolleyes2:

:pop2::martini:
 
www.forbes.com

‘Elon Doesn’t Care About Tesla Anymore’: Musk’s Biggest Fans Are Turning On Him

Ahead of a vote on his $50 billion stock award, Musk faces strident resistance from previously reliable sources who now question his commitment to the company.
www.forbes.com www.forbes.com

For years, Elon Musk had no greater fan than Tesla investor Ross Gerber. When he mocked the SEC on Twitter a few years ago, Gerber asked him to vent to him privately because “you’re just helping the enemy.” When Tesla’s board asked shareholders in 2018 to award Musk with stock potentially worth tens of billions of dollars, Gerber backed it, because “true shareholders are all in on Elon.”

But after a year in which Musk has made increasingly controversial comments and fixated on newer endeavors, like X/Twitter and his artificial intelligence startup xAI, Gerber has had enough. The CEO of Los Angeles-based wealth manager Gerber Kawasaki has suddenly become a strident and outspoken critic of the entrepreneur he’s long admired. And with a looming shareholder vote to restore a pay package for Tesla’s CEO worth around $50 billion, he’ll be voting no — the first time he’s so publicly opposed one of the Tesla board’s recommendations.

“When I voted for the package in 2018, that was based off information I had at the time and the fact that Elon worked at Tesla full time,” Gerber told Forbes. “Now my reluctance to vote for it has to do with new factors, the most important being that he doesn't work at Tesla anymore. He works for xAI and he works for X. Tesla is not his priority.”
 
CorpRebel said:
How can you legitimately say something is unfair if it's legal.
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Musk has a fiduciary duty to the other shareholders of Tesla. He did not treat them fairly, but acted to benefit his own interests at the expense of other shareholders. That's a no-no.
 
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