Tesla shareholders to vote to reinstate Musk's $56 billion pay package

Electric vehicle giant Tesla (TSLA) has filed a preliminary proxy statement as it seeks shareholder approval for two key items: Elon Musk's nearly $56 billion pay package and the company's proposed reincorporation in the state of Texas.
To provide insight into these developments, Weinberg Center for Corporate Governance at the University of Delaware Charles Elson Founding Director joins Market Domination.
Elson expresses skepticism about the potential approval of Musk's compensation plan, noting that even if shareholders were to vote in favor, it may not supersede the previous court decision that struck down the package. He emphasizes that the plan being proposed is not meaningfully different from the one that was deemed "not effectively fair" by the courts.
On the proposed move, "The real question is, why would a shareholder vote for a move that the CEO says a court has decided against me because what I did was inequitable? So, I'm going to a jurisdiction where they'll say that's okay," Elson told Yahoo Finance.
Elson argues that, ultimately, the board's responsibility is to ensure that Tesla survives beyond Musk's tenure. "At some point you have to say 'enough.' That's that where I think you need board refreshment. Obviously this board is unwilling to do it," Elson says.
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[jakesiu]

Within a week...Tesla laid-off 10% workforce...and compensated Elon billions...😆

[JacobyGlynn]

Just voted my 4000 shares to give Elon his pay package

[KungPowEnterFist]

Elon says he doesn't care about the money, so give it to me instead.

[graigfaison]

Back in 2018 those 303 mln shares were about $6bln. Elon does deserve to be paid for 6 years of work. He did earn those 303mln shares. Why does it matter what the value is now. We, shareholders, agreed to pay him that number of shares based on performance

[ChaimLoecher]

University of Delaware....wow, good to know what they are teaching there.

[aminesaib]

In 2018, it was agreed that $55 billion would be paid as compensation if a set of milestones were met, all of which have been achieved. How is it, Charles, that now in 2024, he does not deserve the $55 billion because the stock is down?

[henrylima]

56 billion is outrageous for any company CEO

[richardmartyn]

I really wonder if people realise how much $56 billion is . Tesla has barely made 20 billion net profit since it started. Far too much.

[Enigmaprince]

So if someone votes YES u agree to give him the package? I dont get the voting system they have provided with minimum explanation other than list of agendas from the board

[mannysanchez]

Im a share holder and i disagree with the ruling

[ehsanteymourian]

It is not the law; it is that specific judge who blocked Elon Musk in the first place when he wanted to buy Twitter. I am a shareholder and agree with Elon's decision. I can read the CEO's contract and then purchase the share. Besides, Nothing is judged based on fairness in Wall Street.

[keithng]

Last I checked Tesla is not state owned, so if Tesla wants to move to another state what's so strange about it?
btw, *70%* of the shareholders approved of the 2018 pay package.
so all his talk about 'protecting shareholders', 'against major institutional investor's interest' is mooted.
I've not seen a democratic process where a majority of this magnitude gets overturned.
If I run a company where a court overturns a decision made by 70% of its shareholders, I'll think that I am in China lol

[alanmarkarian]

It's not $56B dollars. Youtube needs community notes.

[Retired.at..Bored.at.]

We all know judges are partisan actors. Companies are moving out of Delaware.

[brodieobrien-pickering]

Tryna get another pay day before the company goes under

[rothsshvili]

Outrageous amout indeed for a CEO remuneration yet TSLA depends way too much on one guy who has already started to crumble bit by bit thus I would not call it a daylight robbery.

[safeershahehsanhabib]

I don't mind but there is nothing for us

[ryanwelsch]

Charles seems to know as much about Tesla and Elon as I know about Mars.

[ignore-fvrc]

Stock is down almost 40% YTD. Have a little more Ketamine Elon

[hailelon]

I support reinstating the compensation package simply because a deal is a deal. I supported it in the first place and in business and life you should keep your word. As it turned out, the shareholders did well and Elon wound up with a huge pile of shares. That’s crazy rich IMHO but I will say he doesn't seem to be buying yachts and mansions. Instead, he does stuff like building a space economy, which I wish the government would have done. Uncle Sam seems to be totally sold out to the legacy gang of monopolies that haven't done anything for the last 40 years. So no thanks to the nanny Judge who doesn't think I'm a grown-up.