Blog Shareholders Approve Musk’s Compensation Package

Tesla Chief Executive Elon Musk’s proposed multibillion-dollar compensation plan was approved Wednesday by shareholders, according to multiple outlets.

The plan is unique in that it is contingent on achieving market cap and operational milestones that would make Tesla one of the most valuable companies in the world. In order for Musk to fully vest, Tesla’s market cap would have to grow to $650 billion and important revenue and profitability goals would also have to be achieved.

The package will keep Musk at the company for the next 10 years and is a 100% at-risk performance award. Musk will not be compensated unless shareholders do well. That said, Musk could ultimately earn up to $55.8 billion in stock and awards if Tesla’s market cap grows from its current $52 billion to $650 billion.

Musk and his brother Kimbal, both on the Tesla board of directors, recused themselves from the vote.

 

[jelloslug]

If Musk gets rich, everyone gets rich.

 

[Franko0331]

Sounds like a win win for everyone Love my Tesla and all the charging stations with more to come.

 

[HankLloydRight]

If Musk gets rich, everyone gets rich.

I think it's the other way around.

 

[Rowan256]

If autopilot comes out, here will be loads less cars on the road, or/and builded. So I very much doubt Elon will succeed achieving this with Tesla alone (so that's without the boring compagnie and such). Unless the dollar loses about 2 times it's value at that time. Nevertheless, balancing the grid will also need a lot of batteries.

 

[jelloslug]

If autopilot comes out, here will be loads less cars on the road, or/and builded. So I very much doubt Elon will succeed achieving this with Tesla alone (so that's without the boring compagnie and such). Unless the dollar loses about 2 times it's value at that time. Nevertheless, balancing the grid will also need a lot of batteries.

The number of cars on the road is independent of who is driving them.

 

[Electroman]

For the first time I am not complaining about executive compensation.

 

[HankLloydRight]

Tesla Shareholders Vote To Stop Pretending That Tesla Is Not A Cult

 

[EinSV]

Tesla Shareholders Vote To Stop Pretending That Tesla Is Not A Cult

Most Tesla shares are owned by institutional investors, who must have overwhelmingly voted for the plan since the vote was 80-20 in favor.

I find it fascinating that Tesla critics try to equate professional fund managers like those at T. Rowe Price, Baillie Gifford and Baron Funds -- who all publicly announced they supported the plan -- to cult members. Elon Musk’s massive Tesla CEO compensation plan gets backing from major shareholders

 

[HankLloydRight]

Um...it was a joke.

 

[EinSV]

Um...it was a joke.

Whelp, it sounded just like something Bob Lutz or Jim Chanos would say:

https://www.teslarati.com/bob-lutz-vs-elon-musk-history/
Jim Chanos says he's still betting against Elon Musk's Tesla: It's a 'cult stock'

But they are both a bit of a joke as far as Tesla goes so I guess I mistook one type of joke for another. My bad!

 

[AmpedRealtor]

Not surprising. Most TSLA stockholders are sheep.

 

[HankLloydRight]

I probably got about 15 calls from Tesla representatives frothing at the mouth to take my proxy votes over the phone.

As soon as I started asking just a few questions about EM and how much stock he already owns, how much he would own, and how much that stock would appreciate given the goals of the new plan, they pretty much hung up on me before I could cast a "no" vote, even though I was just asking what I thought were normal questions and hadn't yet decided how I was going to vote. But they clearly wanted to move on to the next call and maybe get some more "easy yes" votes without people asking any questions.

They were very aggressive in calling me at least once, if not twice a day the last two weeks.

 

[SO16]

I probably got about 15 calls from Tesla representatives frothing at the mouth to take my proxy votes over the phone.

As soon as I started asking just a few questions about EM and how much stock he already owns, how much he would own, and how much that stock would appreciate given the goals of the new plan, they pretty much hung up on me before I could cast a "no" vote, even though I was just asking what I thought were normal questions and hadn't yet decided how I was going to vote. But they clearly wanted to move on to the next call and maybe get some more "easy yes" votes without people asking any questions.

They were very aggressive in calling me at least once, if not twice a day the last two weeks.

So they were right in not wasting any more time with you?

 

[Electroman]

even though I was just asking what I thought were normal questions and hadn't yet decided how I was going to vote

Really? You think they were born yesterday, can't understand your intent with your "When did you stop beating your wife?" line of questioning?

 

[HankLloydRight]

So they were right in not wasting any more time with you?

I was trying to make an informed decision. I think it's reasonable to ask them questions if they want me to vote over the phone. The entire thing is suspect because how would I even know they checked the right box and they just take a yes vote no matter what I say? Only an internal audit of the tapes might reveal such gaming.

If they really just want my vote either way, they would not have hung up on me. But their bias was clear in that they wanted a 'yes' vote and anything else is a waste of time. That's bulls----
.

 

[SO16]

I was trying to make an informed decision. I think it's reasonable to ask them questions if they want me to vote over the phone. The entire thing is suspect because how would I even know they checked the right box and they just take a yes vote no matter what I say? Only an internal audit of the tapes might reveal such gaming.

If they really just want my vote either way, they would not have hung up on me. But their bias was clear in that they wanted a 'yes' vote and anything else is a waste of time. That's bulls----
.

I guess the only solution to your problem is to sell the stock.

 

[HankLloydRight]

I guess the only solution to your problem is to sell the stock.

What? Who said I had any problem?

Are you saying I should just follow the pack mentality without any critical thinking?

I guess I'm not a fanboi like some people. I actually have a brain I like to use.

 

[SO16]

What? Who said I had any problem?

Are you saying I should just follow the pack mentality without any critical thinking?

I guess I'm not a fanboi like some people. I actually have a brain I like to use.

Reread your posts. Are you not bringing up a problem?

Why do you jump to the fanboy argument? I didn’t say anything about it. You want to deny a pay package to the board agreed upon package. That’s your right. Just seems odd to hang on to the shares to reap the rewards of his work due to the compensation package you denied.

 

[HankLloydRight]

Reread your posts. Are you not bringing up a problem?

Why do you jump to the fanboy argument? I didn’t say anything about it. You want to deny a pay package to the board agreed upon package. That’s your right. Just seems odd to hang on to the shares to reap the rewards of his work due to the compensation package you denied.

And this is why I jump to the fanboy argument. Your bias is showing. Who said I was going to vote "no"?

I just wanted more information than "everyone else is doing it."

The first response of any fanboy to any distention among the ranks is "well, just sell the stock". What a moronic thing to say.

If you want to intelligently discuss the pros and cons of his compensation package, than please do that. But don't just tell me how to handle my own investments just because I'm seeking more information than the leemings who just blindly go along with whatever they're told to do.