Elon Musk's compensation agreement was approved by Tesla shareholders and reflects their support for his leadership and the terms of the agreement
Questions to inspire discussion
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What is the controversy surrounding Elon Musk's compensation agreement?
—The controversy stems from Elon Musk not honoring his employment contract, despite previously being praised for his leadership and innovation.
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Who objected to Elon Musk's compensation agreement?
—Ross Gerber objected to Elon Musk's compensation agreement, claiming that he wouldn't qualify for more than half of it.
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Why did shareholders approve Elon Musk's compensation package?
—Shareholders approved Elon Musk's compensation package because they judged his leadership as worth the agreed amount.
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What was the value of Elon Musk's compensation agreement?
—Elon Musk's compensation agreement with Tesla was valued at $2.283 billion.
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What happened to Elon Musk's compensation agreement?
—Elon Musk's compensation agreement was rescinded by a Delaware judge, and shareholders who vote no on the agreement will not be honoring their agreements.
Key Insights
- 📉 "You said Elon was the amazing innovator of our time but now you refuse to honor his Employment contract for six years of work that made many of your clients wealthy do you honor your commitments or do you back out."
- 💰 Elon Musk's compensation agreement was based on achieving aggressive targets for revenue growth, adjusted EBITDA growth, and market capitalization growth.
- 📈 The approval of Elon's compensation plan required a 73% vote by Tesla shareholders, excluding Elon and Kimbell.
- 💰 Elon's compensation plan allowed him to potentially make 56 billion, raising questions about whether it would have been better for Tesla shareholders if he had made less.
- 📉 If Tesla had not secured Elon Musk as CEO, the company would have gone bankrupt and shareholders would have been wiped out.
- 💰 The shareholders overwhelmingly approved the compensation package, indicating their support for Elon Musk's leadership and the terms of the agreement.
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XMentions: @Tesla @HabitatsDigital @iCannot_Enough
Clips
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00:00 🚫 Former Tesla Bulls Ross Gerber and Leo Kogan refuse to honor Elon Musk's compensation agreement due to dissatisfaction with his actions.
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00:57 🔥 Elon Musk's former supporters are now criticizing him for not honoring his employment contract, despite previously praising him as an amazing innovator.
- Elon Musk's former supporters are now criticizing him for not honoring his employment contract, despite previously praising him as an amazing innovator.
- The speaker and Elon Musk went to the same school but never met, as they had different social and academic interests.
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03:37 🚫 Ross Gerber and Leo Koguan are not honoring Elon Musk's compensation agreement, despite Musk earning nine out of 12 tranches and the board and shareholders agreeing to it.
- Ross Gerber objects to Elon Musk's compensation agreement, claiming that he wouldn't qualify for more than half of it, but the stock price is currently less than $650 billion, so he actually earned nine out of 12 tranches.
- The board of directors and shareholders agreed to compensate Elon Musk based on achieving aggressive growth targets, and voting against the compensation package would be Musk's own decision.
- Ross Gerber and Leo Koguan are not honoring Elon Musk's compensation agreement, which is seen as a betrayal of trust and lack of self-awareness.
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07:07 🚫 Elon Musk received excessive stock options from Tesla, deemed illegal and had to be returned, but his compensation plan was approved by shareholders and valued at $2.283 billion.
- Elon Musk received illegal stock options from Tesla, which were deemed excessive and had to be returned to shareholders.
- Elon's stock compensation plan was not a gift, but rather the right to purchase shares at the same price as anyone else, and it was approved by Tesla shareholders in March 2018.
- Elon Musk's compensation agreement with Tesla was valued at $2.283 billion, and the accounting for stock options is inscrutable.
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10:24 🚫 Elon Musk's compensation plan was not honored due to a drop in stock price, and there was a misunderstanding about stock options, but offering him a substantial compensation package was necessary to secure his long-term commitment as CEO of Tesla.
- Elon Musk's compensation plan allowed him to purchase shares at a lower price, benefiting himself but not necessarily Tesla shareholders.
- Elon Musk's compensation package was not honored due to a drop in stock price, and there was a misunderstanding about stock options.
- Tesla needed to offer Elon Musk a substantial compensation package to keep him as CEO, as a smaller amount would not have secured his long-term commitment and could have led to the company going bankrupt.
- Tesla only expensed $2 billion for Elon's call options, and it would not be better for shareholders if the 2018 agreement was torn up and replaced with a $2 billion cash payment to Elon.
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14:57 📉 Elon Musk was asked to accept lower shares as compensation, but shareholders approved his package, judging his leadership as worth the agreed amount.
- Elon Musk was asked to accept a substantially lower number of shares as compensation, but it was argued that he would not agree to work for 10% of his true value.
- Shareholders approved Elon Musk's compensation package, and the majority judged his leadership as worth the agreed amount.
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17:34 📉 Shareholders and team owners would benefit if CEOs and athletes accepted lower compensation, but Elon Musk's compensation agreement was rescinded by a Delaware judge and shareholders who vote no on the agreement will not be honoring their agreements.
- The speaker argues that shareholders and team owners would benefit if CEOs and athletes accepted lower compensation, but received no response when challenging this idea.
- Elon Musk's compensation agreement was rescinded by a Delaware judge, and shareholders who vote no on the agreement will not be honoring their agreements.
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20:19 📺 Ross Gerber and Leo Koguan refuse to honor Elon's compensation agreement.
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Duration: 0:20:39
Publication Date: 2024-05-01T11:22:17Z