Jay Clayton: Tesla's Musk pay package vote is also about the retention of Elon Musk going forward

Former SEC Chairman Jay Clayton joins 'Squawk Box' to discuss news of Tesla asking shareholders to vote again on Elon Musk's $56 billion pay package, what's at stake in the vote, and more.

[HodgeChris]

Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2024 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[Baldwin]

I am regretting not investing in stocks ever since but still grateful i kept money in the money market. With about $200k maturing soon, i plan investing in the stock market. What stocks should I look into as a newbie to safely grow my money?

[magpieeuc]

Jay Clayton 2018 with a big smile "he has to get the company to 650 billion in 10 years, this is absolutely crazy"

[the_investor]

Blackrock and vanguard also own a large percentage of tesla but i don’t see them at the factory lol

[FinanceNinja]

Not only am I voting FOR this, I would vote for a new tranche at $1 trillion market cap intervals, 1% per tranche.

I would gladly give Musk 10% of the company for a 20x on my investment in return within the next 10 years.

[kellymoses]

Tesla 2018 - 2022 (timespan of the comp plan):

Revenues: $191.4 Billion
Gross profit: $45.2 Billion
Net income: $17.9 Billion

[carlosgamez]

Curious timing of it all, Tesla announced a 10% layoff of its global workforce and then lost two top executives because they “resigned”. A little lost in why this pay package is the priority for Elon Musk right now

[felixbonneau]

The CNBC guy is clueless, there is no appeal happening right now, and the revote MAY reinstate the package if done with full and fair disclosure, attaching a post trial opinion and saying that you don't agree with it is not a fair disclosure under delaware law

[ThisIsMikeBlum]

This is atrocious timing for this, and Musk should realize that. Should wait for a turnaround and then bring this to vote. So, NO.

[TheMadmax]

If everyone agreed to a package that was practically unobtainable when Tesla was on the brink of bankruptcy back in 2018 then let him have it.

[CrypticFoxGaming]

The problem with not appealing is the level of payment the "winning" lawyers are requesting. So Elon would get his pay package back, but there'd be a bunch of shares issued to a bad actor law firm :P

[JWSpaceX]

pay that man his money. he's the reason why Tesla even exists

[GK-qcry]

55 billion is an insane pay packet. It's like 10% of the current value of Tesla? There's compensation and then there's this. I don't like the way he's got the board over a barrel with a threat to leave. About the only thing decent is that he has to stay for 5 more years. I think this is to get control back of his share as he frittered too much of it away to Twitter.

[yolandadeborahdon-pierrot]

Elon should resign and start his own company so that he doesn't have to deal with greedy investors.

[patecar]

If only they put this much effort into finding away to avoid lay offs.

[andrerodriguez]

Kinda funny Melissa asks, how will the SEC see share holders voting for a pay package that was made in the past, isn’t that unusual? I would say the SEC should investigate why a judge cancels a pay package that was voted on by a majority of the share holders in the past. And a single share holder with 9 shares is given $10K by lawyers for a so called ‘class action lawsuit’ which the lawyers can potentially make billions for themselves. And no portion of the billions of dollars not given to tesla share holders, if this was a class action lawsuit. I smell something rotten in Denmark. 😢

[lyndakorner]

If the Board of Directors was doing its job, the members would have fired Musk by now. They certainly wouldn't be handing him this money.

[ronmatthews]

Who makes billions of dollars to work part-time ?

[piaeichberg]

Elon pumped the shareprice at the time with his tweets so the compensation package criteria were met. He dictated the comp package to the board. I know how I will vote on my shares

[dxhhkyr]

Very interesting, thanks. Now I’ll say what I really think, not!