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thewayneNow, why they would think he wasn't worth $56 billion a year, I just can't imagine!
A shareholder group sued to block his compensation package, saying that the compensation board had too close a relationship with Musk, that it wasn't sufficiently independent. While the compensation package was voted on by shareholders, the judge ruled that they were not properly informed of how close the ties were between Musk and the board, which voted for the package.
From the article: "Musk's pay plan "is the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude—250 times larger than the contemporaneous median peer compensation plan and over 33 times larger than the plan's closest comparison, which was Musk's prior compensation plan," the ruling said."
But this is the clincher: "McCormick criticized the Tesla board, writing that Tesla Chair Robyn Denholm had a "lackadaisical approach to her oversight obligations." Although Musk and his brother Kimbal recused themselves from the pay-plan vote, "five of the six directors who voted on the Grant were beholden to Musk or had compromising conflicts." This "allow[ed] Musk to dictate the timing of the process and the terms of the Grant," McCormick.
For example, board member James Murdoch "was a long-time friend of Musk before he joined the Board, and they repeatedly vacationed together with their respective families." Board member Antonio Gracias "had business relationships with Musk dating back over 20 years, as well as the sort of personal relationship that had him vacationing with Musk's family on a regular basis."
Ira Ehrenpreis, who chaired the board's compensation committee, was a close friend of Kimbal's and acknowledged that "his personal and professional relationship with the Musk brothers has had a 'significant influence on his professional career.'" Board member Brad Buss "owed roughly 44 percent of his net worth to Musk entities," and "Denholm derived the vast majority of her wealth from her compensation as a Tesla director," the ruling said.
Todd Maron, Tesla's general counsel, wasn't on the board but played a key role in negotiating Musk's pay.
"The working group included management members who were beholden to Musk, such as General Counsel Todd Maron, who was Musk's former divorce attorney and whose admiration for Musk moved him to tears during his deposition," McCormick wrote. "In fact, Maron was a primary go-between Musk and the committee, and it is unclear on whose side Maron viewed himself. Yet many of the documents cited by the defendants as proof of a fair process were drafted by Maron."
Yeah. Must be nice to have the entire board in the palm of your hand for one reason or another.
https://arstechnica.com/tech-policy/2024/01/elon-musks-56-billion-pay-plan-voided-as-shareholders-beat-tesla-in-court/
A shareholder group sued to block his compensation package, saying that the compensation board had too close a relationship with Musk, that it wasn't sufficiently independent. While the compensation package was voted on by shareholders, the judge ruled that they were not properly informed of how close the ties were between Musk and the board, which voted for the package.
From the article: "Musk's pay plan "is the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude—250 times larger than the contemporaneous median peer compensation plan and over 33 times larger than the plan's closest comparison, which was Musk's prior compensation plan," the ruling said."
But this is the clincher: "McCormick criticized the Tesla board, writing that Tesla Chair Robyn Denholm had a "lackadaisical approach to her oversight obligations." Although Musk and his brother Kimbal recused themselves from the pay-plan vote, "five of the six directors who voted on the Grant were beholden to Musk or had compromising conflicts." This "allow[ed] Musk to dictate the timing of the process and the terms of the Grant," McCormick.
For example, board member James Murdoch "was a long-time friend of Musk before he joined the Board, and they repeatedly vacationed together with their respective families." Board member Antonio Gracias "had business relationships with Musk dating back over 20 years, as well as the sort of personal relationship that had him vacationing with Musk's family on a regular basis."
Ira Ehrenpreis, who chaired the board's compensation committee, was a close friend of Kimbal's and acknowledged that "his personal and professional relationship with the Musk brothers has had a 'significant influence on his professional career.'" Board member Brad Buss "owed roughly 44 percent of his net worth to Musk entities," and "Denholm derived the vast majority of her wealth from her compensation as a Tesla director," the ruling said.
Todd Maron, Tesla's general counsel, wasn't on the board but played a key role in negotiating Musk's pay.
"The working group included management members who were beholden to Musk, such as General Counsel Todd Maron, who was Musk's former divorce attorney and whose admiration for Musk moved him to tears during his deposition," McCormick wrote. "In fact, Maron was a primary go-between Musk and the committee, and it is unclear on whose side Maron viewed himself. Yet many of the documents cited by the defendants as proof of a fair process were drafted by Maron."
Yeah. Must be nice to have the entire board in the palm of your hand for one reason or another.
https://arstechnica.com/tech-policy/2024/01/elon-musks-56-billion-pay-plan-voided-as-shareholders-beat-tesla-in-court/
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Date: 2024-02-01 12:15 pm (UTC)no subject
Date: 2024-02-01 01:24 pm (UTC)Wait, this can be disqualifying?!?! Somebody better tell Clarence Thomas about that!
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Date: 2024-02-01 08:26 pm (UTC)Clarence never met a rich person he didn't like.
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Date: 2024-02-02 12:57 am (UTC)Hugs, Jon
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Date: 2024-02-02 07:49 am (UTC)no subject
Date: 2024-02-02 02:51 pm (UTC)My next post on him and this incident is quite amusing!