All of Wall Street’s attention was focused on Microsoft and Google’s forays into artificial intelligence on Tuesday, January 30, when Elon Musk inadvertently stole the spotlight. A Delaware judge, Kathleen McCormick, made the request“Cancel” Between 2018 and 2022 Tesla boss remuneration or about 56 billion dollars (about 52 billion euros). A trial without a jury was held in November 2022 following a complaint by shareholder Richard Tornetta.
The judgment is 201 pages long, but reads like a novel. Judge McCormick begins by setting the scene with the questions: “Was the richest man in the world overpaid?”
And the supervisory board did “breached his fiduciary duties” In front of the shareholders by giving such remuneration at the beginning of 2018?In detail, Elon Musk was allocated by the board that year, followed by Tesla’s general meeting, twelve tranches of options each representing 1% of the capital.
“To acquire a tranche, Tesla’s market capitalization must exceed $50 billion and Tesla must meet its adjusted operating profit (EBITDA) target or revenue target for four consecutive fiscal quarters”Describes the judge, who notes that this scheme “Created the largest potential remuneration opportunity ever in a listed company”. That was 250 times more than other American bosses and 33 times more than the previous plan given to Elon Musk.
The plan, when it was awarded, had an estimated value of “only” $2.6 billion and a maximum value of $55.8 billion, which no one believed at the time because the stakes were so high. “The possibility of existence
(from Tesla) was extremely low »Mr. Musk testified, recalling that at the time, his company was very close to bankruptcy, which was indeed the case.However, the billionaire achieved an industrial miracle and fulfilled all the financial conditions that allowed him to release his remuneration in June 2022, his company becoming the world’s leading electric manufacturer (Tesla was overtaken by the Chinese BYD in 2023).
The supervisory board argued that the plan was intended to align the interests of Musk, who did not receive a salary, with those of the company. Judge Kathleen McCormick wrote a short course on business finance for him. “Stock-based compensation continues to be a powerful means of aligning the interests of management with the interests of shareholders, as recognized by Delaware law”But, the judge continues, other bosses have also foregone pay
You have 50% of this article left to read. The rest is reserved for subscribers.
This is a new record that scientists from the Korea Fusion Energy Institute (KFE) have…
Damages associated with drought, floods, hail and other increasingly violent events are expected to increase…
An estimated 9 million people in the United States are still waiting for their final…
The death of seven humanitarian workers from the American NGO World Central Kitchen in an…
Today, at one o'clock in the morning, Gamer updates it Boutique de Fortnite Through the…
The Basic Instinct and Casino actress looks back at a time in Hollywood when adapting…