Nope, the entire 2018 plan has been voided.From what I can tell, this ruling is really just about the final 12th tranche of his 2018 plan? I'm not entirely sure, but I am trying to figure it out.
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Nope, the entire 2018 plan has been voided.From what I can tell, this ruling is really just about the final 12th tranche of his 2018 plan? I'm not entirely sure, but I am trying to figure it out.
Nope, the entire 2018 plan has been voided.
It was when the stock was trading at $400.But the ruling states it voids $55B of his compensation plan. Wasn't the complete 2018 plan worth much more than that?
304M shares * $180But the ruling states it voids $55B of his compensation plan. Wasn't the complete 2018 plan worth much more than that?
Again, the shareholder vote was essentially voided because the board failed to give us complete, and accurate, information, preventing the shareholders from making an informed decision.I was confused by this ruling as shareholders approved the package and how come all the failed CEOs who get huge payments haven’t been stopped ?
It was when the stock was trading at $400.
Yeah I'm aware of the lawsuit, but on what grounds does a Delaware judge have the power to null a business compensation agreement? Like why did the judge feel it was "unfair", for what reason?
Does it state specifically what shareholders didn’t know? Specifically.Again, the shareholder vote was essentially voided because the board failed to give us complete, and accurate, information, preventing the shareholders from making an informed decision.
Well surely even though the Board was expecting that the judge would find that the pay package was valid, they had to have a plan in mind in case it was not. And quite possibly Elon's recent statement(s) about 25% voting control were meant to anticipate this ruling, thus freeing the board to develop a pay package that focuses not just on pay but perhaps more importantly Elon's desire to control Tesla's AI and robotics programs going forward.Maybe it’s time for Robyn or Tesla board to release a statement
Announce a new comp plan, give bonuses for prior years and put it to shareholder vote asap
One can wish…
I see, seems to me the judge has voided it on a technicality.Again, the shareholder vote was essentially voided because the board failed to give us complete, and accurate, information, preventing the shareholders from making an informed decision.
That's right. Goog currently down 5.6%. Tsla caught up in that in addition to court ruling.The market is currently unsure how to react to this but the AH dump is definition related to Google and Msft. QQQ is over -1% AH.
This was an extreme, likely activist, position taken by this particular judge, for two reasons:
This judge likely knew all this, and did it anyway simply because it will take 7+ years in appeal to get this farcical ruling undone. Elon's share options expire in less than 4 years (Jan 20, 2028), requiring a replacement Comp. plan by practical necessity. Then more court cases...
- the Burden of Proof is NEVER on the Defendant, ALWAYS on the Plaintiff (this is so basic a mistake as to be staggeringly wrong in legal terms), and
- the "Fairness" of the CEO Comp plan was voted upon, and settled, by the shareholders on March 31, 2018. If the Majority felt it was a unfair plan, the plan would not have been adopted by a vote of Shareholders.
Here's the problem going forward for any new Comp plan: Would Elon trust that he won't get the 'Delaware Rug-pull' again after he's done all the hard work? I sure wouldn't, and sadly would vote against such a plan. Pay the man some cash, BoD! You got lots.
Especially companies that operate internationally.No. Many, if not most, corporations are or were established in Delaware due to favorable business regulations. I would not read political bias into this.
Again, the shareholder vote was essentially voided because the board failed to give us complete, and accurate, information, preventing the shareholders from making an informed decision.
This is a perfect chance to come up with a new bigger package with a longer time frame.
(This time hire even more expensive lawyers to judge proof it)