Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[scaesare]

Here's the judgment:

https://courts.delaware.gov/Opinions/Download.aspx?id=359340

". . . the defendants bore the burden of proving that the compensation plan was fair, and they failed to meet their burden."

I recognize this not criminal law, but requiring the defendant to prove they were innocent rather than requiring the plaintiff to prove the validity of their accusation seems odd...

 

[jerry33]

Is the tax rate lower in Texas? That would be good for Elon.

Yes, It's zero. Federal income tax only. (plus property tax)

 

[Mengy]

"In the final analysis, Musk launched a self-driving process, recalibrating the speed and direction along the way as he saw fit. The process arrived at an unfair price. And through this litigation, the plaintiff requests a recall."

Didn't the plaintiff in this case only own one share of TSLA? I believe I read that somewhere quite awhile ago.

 

[bubb]

The judge seems to hinge their ruling mostly on whether there was a sufficiently adversarial process to explore in good faith what the minimum threshold was to retain Elon. His ultimatum in recent weeks is starting to make a lot more sense and might even have been "performing for the cameras". In the end the board and process or lack thereof exposed them to this lawsuit and any future plan will be done much more carefully. Still, I'm pretty stunned at the cute language and general arrogance from this court.

 

[Stretch2727]

$$$ going back into EPS would be exactly why the lawsuit was initiated by shareholders right lol, that’s precisely the dynamic here

The ironic thing is the shareholders that initiated this could end up doing more damage to the share price than the $$$ flowing back into EPS. The stock market is forward looking and this is not good to motivate a CEO.

 

[Paul_SF]

"Will the real shareholders please stand up?" Can Elon/Tesla use this opportunity to find out how many fake shares are out there?

 

[geometro]

This is rather confusing for sure, but unfortunately bad for shareholders given the AH dump (-3.65%).

 

[mongo]

The ironic thing is the shareholders that initiated this could end up doing more damage to the share price than the $$$ flowing back into EPS. The stock market is forward looking and this is not good to motivate a CEO.

I don't think that's irony in this case...
It may have been their intention.

 

[wipster]

The thing that's frustrating to me and why I feel it was/is a fair pay package, regardless of any influence or ignorance is that the board and shareholders didn't give Elon money, he had to earn it, reaching milestones that were not just 'gimmes' in order to receive it!

 

[Singuy]

This is rather confusing for sure, but unfortunately bad for shareholders given the AH dump (-3.65%).

The market is currently unsure how to react to this but the AH dump is definition related to Google and Msft. QQQ is over -1% AH.

 

[geometro]

https://www.wsj.com/business/elon-musks-55-billion-tesla-pay-package-struck-down-by-judge-3e619f53?st=kynyxu1iqv3m187&reflink=article_copyURL_share

Short blurb, but this stood out:

The ruling means the electric-vehicle maker must draft a new compensation package for the CEO.

 

[y_naught]

So much drama. And I was feeling so good about Monday morning‘s purchase.

 

[geometro]

The market is currently unsure how to react to this but the AH dump is definition related to Google and Msft. QQQ is over -1% AH.

Good point… this court decision made me forget about those two reporting AH.

 

[ShareLofty]

Great day for Tesla and TSLA! If this stops Elon from getting another comp package then we will be better off. He made his choice when he purchased the bird, selling TSLA and diverting engineers

 

[TesLeif]

Are any of the loans/agreements used to purchase Twitter tied/backed up by Elon's compensation package, which seemed like a solid bet at the time?

 

[Paul_SF]

Great day for Tesla and TSLA! If this stops Elon from getting another comp package then we will be better off. He made his choice when he purchased the bird, selling TSLA and diverting engineers

Who's "we"? Don't bother to reply, you're on my Ignore list now!

 

[Stretch2727]

https://www.wsj.com/business/elon-musks-55-billion-tesla-pay-package-struck-down-by-judge-3e619f53?st=kynyxu1iqv3m187&reflink=article_copyURL_share

Short blurb, but this stood out:

The ruling means the electric-vehicle maker must draft a new compensation package for the CEO.

Reading the ruling it seems the real issue they had was the independence of the board. Based on the what ruling states, not sure the current board is independent enough to even start the process.

 

[elasalle]

Maybe it’s time for Robyn or Tesla board to release a statement
Announce a new comp plan, give bonuses for prior years and put it to shareholder vote asap
One can wish…

 

[mongo]

Are any of the loans/agreements used to purchase Twitter tied/backed up by Elon's compensation package, which seemed like a solid bet at the time?

Nope, covered by currently owned shares.

 

[Mengy]

Are any of the loans/agreements used to purchase Twitter tied/backed up by Elon's compensation package, which seemed like a solid bet at the time?

From what I can tell, this ruling is really just about the final 12th tranche of his 2018 plan? I'm not entirely sure, but I am trying to figure it out.