Tesla shares slide after judge voids Elon Musk’s $56 billion compensation::The compensation package the Tesla board gave CEO Elon Musk set a record for publicly traded corporations, a Delaware judge noted in her ruling.
Tesla and Musk’s attorneys, the court decided, “were unable to prove that the stockholder vote was fully informed because the proxy statement inaccurately described key directors as independent and misleadingly omitted details about the process.”
I’m guessing this was the key problem. Courts are very reluctant to set aside corporate decisions like CEO pay packages for soft reasons like “unfairness”. But when you start getting into dishonesty and not meeting basic requirements, it’s kind of forcing the judge’s hand.
Deebster@programming.dev 5 months ago
So Tesla gets that $56 billion back? Kinda funny that that causes their share price to drop.
my_hat_stinks@programming.dev 5 months ago
Your mistake there is thinking the stock market has to make sense. For instance, mass layoffs are a huge red flag that a company is failing and in any sane world would instantly tank the value. The stock market instead likes layoffs because it’s not at all interested in what the company actually does, so spending a little less in the short term to produce a lot less long term is a good thing.
crazyminner@lemmy.ml 5 months ago
Elon is selling to get money to pay bills. Gotta show you can afford the massive lines of credit.
bonus_crab@lemmy.world 5 months ago
Well, theyd get the shares back, and then presumably be able to sell them …
Corkyskog@sh.itjust.works 5 months ago
They aren’t real shares, so there is nothing to “turn back” these are stock options.
Think about it like when a Nation State prints money. Do they have to directly steal money to print more money? No, they just turn on the printers and dilute the purchasing power of all the existing money. This is basically the same with Tesla except money = TSLA shares. For every share they print for Elon, it makes all the rest of the shares worth less.