Musk blasts judge as he loses record $56BN Tesla pay package.

HAYSIE

‘Fatally flawed’: Delaware judge rejects Elon Musk’s second bid to ram through $56bn pay package



https://www.msn.com/en-gb/news/uknews/fatally-flawed-delaware-judge-rejects-elon-musk-s-second-bid-to-ram-through-56bn-pay-package/ar-AA1v9GR8?ocid=msedgntp&pc=NMTS&cvid=1875cf5e13a04dfcbbd4cdd39ad78ae1&ei=68#fullscreen

Essexphil

Let's leave to 1 side the fact that Tesla has an absurd value of $700 billion. I say absurd, because it is making profits of under $10 billion, on sales of about $100 billion-big numbers, but not $700 billion big numbers.

Let's run with those figures for a minute. Why would any sane investor want to reward 1 man with $56 billion of a $10 billion profit?

Just because a majority of shareholders are controlled by 1 man, does not mean that the other shareholders can be compelled to give money away. In the UK this tends to be known as "fraud on the minority"

PS. I detest this practice of publicly attacking Judges who make rulings people do not like

Tikay10

Essexphil said:

Let's leave to 1 side the fact that Tesla has an absurd value of $700 billion. I say absurd, because it is making profits of under $10 billion, on sales of about $100 billion-big numbers, but not $700 billion big numbers.

Let's run with those figures for a minute. Why would any sane investor want to reward 1 man with $56 billion of a $10 billion profit?

Just because a majority of shareholders are controlled by 1 man, does not mean that the other shareholders can be compelled to give money away. In the UK this tends to be known as "fraud on the minority"

PS. I detest this practice of publicly attacking Judges who make rulings people do not like

@Essexphil


Agree with the gist of that, though it should be noted the pay award is backdated to 2018, so is really for 5 or 6 years.

Quite how Tesla has a P/E of ~70 remains a mystery though. And of course Musk & Trump WILL have a big fallout, as Trump needs to be the centre of attention, & when he does he'll slap all sorts of Tariffs on Tesla.

Worth noting that Tesla has a factory in Shanghai, China, so there's a conundrum already, as Trump says he'll be introducing punitive tariffs on Chinese made goods.

Essexphil

Tikay10 said:

Essexphil said:

Let's leave to 1 side the fact that Tesla has an absurd value of $700 billion. I say absurd, because it is making profits of under $10 billion, on sales of about $100 billion-big numbers, but not $700 billion big numbers.

Let's run with those figures for a minute. Why would any sane investor want to reward 1 man with $56 billion of a $10 billion profit?

Just because a majority of shareholders are controlled by 1 man, does not mean that the other shareholders can be compelled to give money away. In the UK this tends to be known as "fraud on the minority"

PS. I detest this practice of publicly attacking Judges who make rulings people do not like

@Essexphil


Agree with the gist of that, though it should be noted the pay award is backdated to 2018, so is really for 5 or 6 years.

Quite how Tesla has a P/E of ~70 remains a mystery though. And of course Musk & Trump WILL have a big fallout, as Trump needs to be the centre of attention, & when he does he'll slap all sorts of Tariffs on Tesla.

Worth noting that Tesla has a factory in Shanghai, China, so there's a conundrum already, as Trump says he'll be introducing punitive tariffs on Chinese made goods.

True to say it is not per year. Equally true to say it is bigger than the total profits ever made by the Company.

You raise an interesting point in relation to the tariffs. Simply because technological advance and globalisation makes this impossible to police.

What I suspect will happen is this. Companies will open a US "Head Office". Continue making goods in some god-forsaken country where people work for a handful of beans, or force 9 year olds to work for less. Then pay someone to "assemble" it in the USA.

Much like the "UK" car industry. Or Amazon. Or Tesla.

These days, tariffs work against smaller, local and national Companies. For the benefit of multi-national Companies. Who do not pay. And can raise prices because they only have to undercut the tariff.

Tikay10

@Essexphil


"Equally true to say it is bigger than the total profits ever made by the Company."


Now that's a mind-boggling stat.

HAYSIE

Tikay10 said:

@Essexphil


"Equally true to say it is bigger than the total profits ever made by the Company."


Now that's a mind-boggling stat.

Just about covers his Twitter purchase.

Essexphil

Tikay10 said:

@Essexphil


"Equally true to say it is bigger than the total profits ever made by the Company."


Now that's a mind-boggling stat.

Just to qualify that statement a little.

Total gross profits ever made is just over $70 Billion.

Whereas net profits are far, far lower. And that is before you deduct the $56 Billion

Essexphil

I have always been fascinated by Laws relating to Minority Shareholder protection. Whole variety of reasons.

Used to do a lot of work for a well-known business organisation on this. One of the more important cases involved (generally, not personally) Spurs (Sugar v Venables). And, er, another massive case involved the buying and selling of a Company I used to work for

HAYSIE

Musk blasts judge as he loses record $56BN Tesla pay package



Tesla chief Elon Musk has slammed a judge's decision to rescind his $56billion pay package for a second time, despite it being approved by shareholders and directors. The payout, which came in the form of Tesla stock options, made Musk the richest man in the world. The package is now worth more around $100bn, following a major Tesla share price rally in recent weeks.


https://www.msn.com/en-gb/money/other/musk-blasts-judge-as-he-loses-record-56bn-tesla-pay-package/ss-AA1vbDUz?ocid=msedgntp&pc=NMTS&cvid=05eb5fac628a4fc297e60642f8ed34d8&ei=68