“ He proposed that his compensation as CEO take the form of a zero base salary and grants of more Tesla stock if Tesla’s stock value went up from its current level of $50 billion. If it went up to $99 billion or less, Musk would get zero. If it went up to $100 billion, he would get 1% more of the company’s stock to add to his 21.9%. If it went up $650 billion, he would get 6% more, worth $55 billion. That’s what happened (p. 6 of the post-trial opinion).”
So, if I understand this correctly, Musk proposed that if the market cap increased the value of shareholders’ stock by 1,300%, he would increase the number of share he held by ~33%. And someone in a position of authority found fault with this. It will be interesting to see what SCOTUS has to say about this. And the date that he moves Tesla from Delaware to Texas.
This actually won't go to SCOTUS, only the Supreme Court of Delaware, because it's a matter of state law. It *is* odd that people criticize him for this. I think he was as likely underpaid as overpaid.
“ He proposed that his compensation as CEO take the form of a zero base salary and grants of more Tesla stock if Tesla’s stock value went up from its current level of $50 billion. If it went up to $99 billion or less, Musk would get zero. If it went up to $100 billion, he would get 1% more of the company’s stock to add to his 21.9%. If it went up $650 billion, he would get 6% more, worth $55 billion. That’s what happened (p. 6 of the post-trial opinion).”
So, if I understand this correctly, Musk proposed that if the market cap increased the value of shareholders’ stock by 1,300%, he would increase the number of share he held by ~33%. And someone in a position of authority found fault with this. It will be interesting to see what SCOTUS has to say about this. And the date that he moves Tesla from Delaware to Texas.
This actually won't go to SCOTUS, only the Supreme Court of Delaware, because it's a matter of state law. It *is* odd that people criticize him for this. I think he was as likely underpaid as overpaid.