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The board, run by the shareholders, wanted that deal and put it in place. They must have thought that the value add was worth it. Granted, it seems many do not
by pylua 3y ago
The board, run by the shareholders, wanted that deal and put it in place. They must have thought that the value add was worth it. Granted, it seems many do not think they acted correctly, hence the ruling and the lawsuits.
The point is that time will tell if this really saves money over the long run. I do not know the law and I am not questioning the board here.
- vkou 3y agoThe board is responsible to the shareholders, but did not act in their best interests.
- rhelz 3y ago// The board, run by the shareholders // If the board was representative of the shareholders wishes, the shareholders wouldn't have sued the board.
- mgiannopoulos 3y agoAbout 78% or so of the shareholders voted in favour of the deal. And will probably vote again when asked. The lawsuit was done by a shareholder with a total of 9 (nine) shares.
- Eddy_Viscosity2 3y agoIf those 78% of shareholders believe that Elon having $56B MORE is a priority in their lives, then should just voluntarily give Elon their shares or send him cash.
- mgiannopoulos 3y agoCompanies and shareholders meetings work a bit differently than what you suggest. Other than that, the grand majority of Tesla shareholders are quite happy with the financial state of the company and would like for Musk to continue leading the company and be compensated for it.
- Eddy_Viscosity2 3y agoI realize that. But there is nothing stopping them from sending him money, if they think he deserves it.
- pie_flavor 3y agoThey thought he deserved it, and voted to send him the money. Then this guy started stopping them.
- Eddy_Viscosity2 3y agoIt turned out this guy's claim was justified, given the court agreed. Again, if it was really important to these investors that Elon have more billions, they do not need any courts permission to just send him money.
- AlchemistCamp 3y agoTry to think about this from the shareholders’ point of view. They want Elon compensated with the bonus he hit very difficult growth targets to earn because they want to make money from him further growing the company. If they just donate the shares they personally bought, then they don’t make money. They lose it.
- Eddy_Viscosity2 3y agoI get that, but my proposal is the same thing. The shareholders could indicate that the only reason they are sending the money is because he met the targets. Therefore he knows that he got the money for meeting target -- precisely the same outcome whether from the company coffers or from individual investors. Those billions could have gone directly to shareholders as dividends, or reinvested in the company for future growth. Either of these would be better at making money for investors. I question the logic that giving it to Elon will motivate him any differently than a lesser, but still very generous compensation would have. It is presumed here that money is what is driving Elon (or other already billionaires). This is only ever partially true. People like him also love the power of being in charge and notoriety. Those are likely worth more than the money for Elon in particular. The board and investors should, as is their fiduciary duty, pay the minimum needed to keep him doing what he's doing.
- salawat 3y agoThink of all the employees that 56B could hire to increase the quality of the end product.
- pylua 3y agoOne person with domain knowledge of running things could be well worth it. How many times have you seen adding more people just make it a bigger, more unsustainable mess? Granted 56 billion is a lot.