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Tesla is asking its shareholders to
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reinstate that multi-billion dollar
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compensation package for CEO Elon Musk
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the one that was rejected by a Delaware
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judge as unfair earlier this year the
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board says it still stands behind the
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pay package of course it does because
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they get paid and that uh vote in favor
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at the company's annual meeting would
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quote restore Tesla's shareholder
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democracy again but they're pulling in
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all the I can't believe First Amendment
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wasn't shoved in this statement
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shareholders will also be voting on
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elon's plan to move Tesla's corporate
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home from Delaware Texas so it's moot
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the Delaware decision mov what they said
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they were going to do they will do it uh
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he'll get his money back they'll win on
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this one Tesla's shareholders very much
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like Trump true social although Tesla's
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an actual business uh still will bid it
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up no matter what he does so they want
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to pay him maybe he's worth it if he if
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the stock does well if he can turn
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around and get better cars and you know
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get the economic prospects of Tesla
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doing well he's certainly capable of it
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compared to Donald Trump uh but um you
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know the argument seems to be they may
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not have been Ware what was behind the
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creation of the pay package but now they
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are um I think they will approve it I
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think most people think they will um
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just for people to be aware Tesla's uh
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stock performance has been more than
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lackluster in 20 24 the shares have lost
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38% of their value so far he L pay
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packages wor 56 billion in January now
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it's closer to 45 billion um he is the
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keyman in this thing at this point it
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probably shouldn't be um and he wanted
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voting control back in January uh he'll
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get that probably it's it's his company
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to do with what he Wills what he wants
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to I don't know I don't it's capitalism
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nice to meet you thoughts I think that's
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right I I think that I do think his pay
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package will be reinstated and the the
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thing that ASAT deut and my colleague at
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Stern pointed out that made a lot of
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sense to me is we see the headline
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number 56 now 45 billion and the delay
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by the way if he were to exercise and
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sell all his shares I don't know if he
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was planning to do that it's cost him 10
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billion even if it's reinstated
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but that's the headline number but when
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they actually devised and awarded the
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compensation package it was on options
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on stock when the stock was Far Below
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this meaning that if you valued his
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actual compensation package when the
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award was made it was dramatically less
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than 45 billion and as much as I hate to
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in any way defend or acknowledge the
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point he wasn't he wasn't paid 45
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billion he was given options much less
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than that and because the stock
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skyrocketed he's he's registered this
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enormous windfall so I'm not sure it's
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entirely fair to say should the board be
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paying him 45 billion if if Vox gave
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us uh let's say $10 million worth of
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options options that had a value of $10
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million and you value options based on
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their upside potential using like the
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black sches method and then Tesla's
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stock went up I'm sorry and then vox's
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stock went up 10x our shares would
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probably be worth some between 100 and
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200 million and people might say well
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these these podcasters aren't worth that
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but that's not the that's not the number
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you look at the initial compensation or
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value of the options when they were
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awarded so I think it'll be reinstated
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and I do think it's a little unfair to
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look at the headline number because what
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we're not taking into account is the
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fact that the stock skyrocketed after
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absolutely I get I think the point that
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Del Court was making is a good one this
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board is in his pocket and that's as
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many corporations are FYI he they're
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particularly in his pocket this board is
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it benefits from him they party with him
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you know it just shows corporate boards
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and this is a particularly um very
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compromised one that will do his bidding
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and and that's to me that's the message
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here is I I think you know the Delaware
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Court is right and these this terribly
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compromised board has every right to
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reward him because he's it he's the one
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he's the guy um again grotesque
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certainly worth it the stock has been up
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under his leadership so they've all
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benefited um in this case they've all
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done very well with his whatever his
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Antics may be um I do think they're
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facing a lot of challenges as we've
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talked about and I think we were we
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borne out to be right even though we got
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slapped by all the stands um which is
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let's look at the company itself the
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product is tired um the toxic behavior
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is hurting the brand um there's
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competition and it's a tough market so
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that's really what people should be
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looking at with this company more than
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uh anything else um and if they if he
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does does really well they should pay
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him a lot if they
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don't I feel like you should be paid
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based on your thing but the way they
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rewarded this is the Delaware Court is
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100% right what a they should go after
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everybody every company often it's like
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this this just happens to be the most
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egregious example of that presumably but
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so far year to date the Tesla is the
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worst performing stock in the S&P I mean
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out of 500 stocks it's the worst
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performing and also they had their
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biggest Miss in terms of estimates for
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vehicle deliv
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uh so I think this stock has a long way
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uh to go down they've laid off 10% of
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the workforce which is probably a good
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idea probably the right move but there's
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a lot the hardest thing about being on a
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board I find and and more broadly
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probably about management is
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compensation and in this instance it's
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it's okay how do we how do we try and
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justify the compensation here what I do
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think this will have an impact on is I
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don't think he's going to be issued some
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many shares that he controls the company
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or a new class of shares I think that
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this is basically sent a signal to the
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board that there are there are other
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there is other governance and you can't
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just do ridiculous things that are
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clearly off market and they're
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benefiting that Jour a second Journal
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piece was so like revelatory what the
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fix is in for this guy again he's done
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really well with the stock I'm G to you
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know I do not compliment Els but the
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problem with this company is not uh that
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he has not paid enough it has to do with
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the you know stop focusing on Twitter
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and focus on get doing better cars it
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doesn't actually it doesn't even matter
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now cuz there's too much competition
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there's too much consumer sentiment
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against him it doesn't matter he unless
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he comes out with the best car ever and
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Ro no matter how many jazz hands he puts
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around Robo taxis or anything else I
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would be surprised if he can pull a
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rabbit out of a hat here he had his time
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and we'll see you know it's a good car
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it's a good car but there's lots of good
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cars now um and that's the way it is he
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waited this is so inevitable what's
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happened to him and it's a business
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story rather than an Elon Musk story
