Everyone is talking about the lemons on hand aplenty.
How about we consider how to make the lemonade?
Let's say neither Elon, nor the Tesla board decide to pursue an appeal. What is affected?
California and the IRS miss a fairly substantial payday.
What if the board devises Elon's future compensation in a way that makes no mention of compensating him for this past period of time at all?
California may not be collecting any tax on Elon's compensation going forward. (depending upon the time period California can lay claim to tax a former citizen of the state)
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Elon owes no taxes, nor will he need to sell shares to pay them, for that period of compensation that has been voided by the court.
The entire problem we have been wringing our hands over, of how Elon would handle the collection of those (now-lost) shares, and all the perils and pitfalls we have discussed in the past few weeks, suddenly become moot.
There will be no shares sold to cover taxes that aren't owed, nor will Tesla have to come up with their side of taxes on Elon's compensation for the period voided.
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I think most of us want Elon to have bankroll for whatever it takes to save Earth and to colonize Mars. Right?
Perhaps the Board could devise a method of giving voting rights to Elon for shares that are gifted to a non-profit legal entity, formed for funding purposes such as:
- accelerating the transition to sustainable energy
- preserving humanity on Earth, in space, and on other planets and satellites
- developing AI in an ethical manner
If such a plan could be carefully crafted, perhaps Elon and Tesla may avoid significant tax liability for Share-option compensation packages going forward, and shareholders wouldn't be quaking in their boots over concerns of how Elon will cover the cost of receiving his compensation. I'd call that a win.
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Elon could also be given an exorbitant salary. Say, a couple of billion per anum to start off with, then merit raises as appropriate.
He could pay or avoid taxes like everyone else, and he could buy TSLA shares on the open market at his leisure, rather than have to sell shares to get some portion of his payday in his hands. It seems likely he might develop a knack for Dollar Cost Averaging with a vengeance. Literally.
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I'm just getting started here. There may be more angles to consider that could work within existing rule sets in order to achieve the goals and get the assets into a safe place. All while giving Elon the voting control he prefers, and the ability to increase his share count as well.
