I don't know exactly how the vote was carried out... but I do wonder if the vote was manipulated in any way.
> Judge Kathaleen McCormick threw out Musk’s pay package in January, ruling that the board members had been insufficiently independent from the Tesla CEO while negotiating the package.
https://www.theguardian.com/technology/article/2024/jun/14/e...
If this stock starts being liquidated at any significant volume, the stock will also definitely drop. Even if these holdings are to be doled out & possible exercised, it sure seems like the company could hire & keep a lot of great people with this stock holding.
> If this stock starts being liquidated at any significant volume, the stock will also definitely drop. Even if these holdings are to be doled out & possible exercised, it sure seems like the company could hire & keep a lot of great people with this stock holding.
Yeah but maybe not Elon, and I believe based on this vote the shareholders fear losing him.
That case has already been decided. And the board re-voting doesn't change that outcome.
Here's the 2018 compensation plan: https://ml.globenewswire.com/Resource/Download/edfcfa2e-bcb6...
It basically says that Elon doesn't get anything unless the stockholders at least 2x their investment, and Elon gets approximately 10% of the company if stockholders 10x their investment. Each tranch had revenue and EBITDA requirements as well, so it was not possible for Elon to just pump the stock. He achieved all the milestones: the company grew significantly, the stockholders 10x-ed their investment.
The judge thought that the stockholders were not properly informed about the board in 2018. Now in 2024, not only have they been informed but they reelected Kimbal Musk as well.
BTW this deal was the most stockholder-friendly deal ever, because Elon only got his compensation if the stockholders got rich. I think it was a good thing, the first of its kind. If they made a new package like this (+10% for another 10x from here), I would vote for it.
Also worth mentioning that his compensation package was worth 2.3B in 2018 when the shares were separated.
Also worth mentioning that everybody found the milestones ridiculous and unachievable in 2018.
Who is "everybody"? Few months back I manage to find some old articles that basically said somebody said that, but none of those articles ever reported any names.
Just like nowadays the general opinion is that Tesla FSD is at least 5 years away or will never work.