Judge Rules Against Elon's Pay Package [⚠️ ADMIN WARNING: NO POLITICS]

[cvalue13]

Elon has given us enough evidence that he's far from a consistently rational actor that I do not trust him with controlling or guiding AI.

I’m not an AI expert from any technical level.

But I am a co-founder of an Intel-backed startup in the AI-adjacent space (EDGE compute infrastructure, like FSD), so I’m around a few folks who are.

And to the person, they think Tesla’s AI related work is, I guess…. amateur.

I don’t say this to take a position either way. I’m not an expert.

but it does leave me standing confused between Musk’s claims about his importance in the space, and generally knowledgeable folks responding with audible giggles.

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[BannedByTMC]

but it does leave me standing confused between Musk’s claims about his importance in the space, and generally knowledgeable folks responding with audible giggles.

Elon has consistently over estimated Tesla's AI technology for years as the slow progress of FSD has shown.

 

[heems]

Who cares who made the plan? Maybe it was his mother. Maybe it was a fart in the wind. We the shared company owners voted by 73% majority to pay the man. Do we the company owners own the company or not? I don’t give a f who Elon knows or doesn’t know at Tesla. He was going to get paid if he made the company owners rich. I wanted it then and I want it now. This “ruling” is a joke and an insult to millions of us company owners. Who the heck is this judge to overrule our majority decision? We will fight this injustice.

 

[heems]

Elon's contribution cannot be understated, but I think Tesla would be better off without him going forward. This is normal for any startup company to change hands as it grows into new phases.

• He is no longer heavily engaged with Tesla, Twitter takes most of his time.
• Poor choices like "Tesla Vision" and no wiper sensors are attributed to Elon.
• Retaliating against Disney with Tesla because they stopped advertising on X.
• He has become an attention seeking spectacle that is a distraction from Tesla's mission.

Oh yeah I remember when Apple brought a “seasoned” CEO of PepsiCo and kicked out the inexperienced founder Steve Jobs. Only to go bankrupt. Dude, you are clueless.
And please tell us YOUR qualifications to make such grandiose BS comments ? You 10x the market cap of any company ? Please do tell. You are passing keyboard judgement on something I bet you know nothing about other than sentiment.

 

[jerhenderson]

The judge ruled this way because everyone who put the package together was beholden to Elon. The game was rigged. That is not a board it suppose to work. They have a fiduciary duty to the company and its shareholders, not a single person.

Should he have been compensated well? Yes. But this was too much. Even Elon knew this, and they took steps to give back some of the comp before this trial, but clearly it didnt help.

The judge ruled that way, despite majority shareholder approval.

 

[Cybertruck 1974]

I bought a bunch of stock when it plummeted to 1.80 a share. now this........Riding the wave!!!

 

[REM]

Elon's contribution cannot be understated, but I think Tesla would be better off without him going forward. This is normal for any startup company to change hands as it grows into new phases.

• He is no longer heavily engaged with Tesla, Twitter takes most of his time.
• Poor choices like "Tesla Vision" and no wiper sensors are attributed to Elon.
• Retaliating against Disney with Tesla because they stopped advertising on X.
• He has become an attention seeking spectacle that is a distraction from Tesla's mission.

Tesla is currently a juggernaut because Elon is an aggressive and demanding CEO. Put someone else in charge and you will turn the company into GM overnight.

I want Tesla to have a CEO that is willing to sit on a stage and tell corrupt companies like Disney to go f*** themselves.

 

[REM]

Who cares who made the plan? Maybe it was his mother. Maybe it was a fart in the wind. We the shared company owners voted by 73% majority to pay the man. Do we the company owners own the company or not? I don’t give a f who Elon knows or doesn’t know at Tesla. He was going to get paid if he made the company owners rich. I wanted it then and I want it now. This “ruling” is a joke and an insult to millions of us company owners. Who the heck is this judge to overrule our majority decision? We will fight this injustice.

yep. Imagine you show up to work one day and your boss breaks the bad news to you that you will in fact be volunteering all of your time instead of getting paid for it.

This is nothing more than another crusade against him.

 

[lowtek]

Elon has given us enough evidence that he's far from a consistently rational actor that I do not trust him with controlling or guiding AI.

Of all the players, none being perfect, I certainly trust Elon the most.

But for discussion purposes, who would you trust?

Also, it doesn't really matter ... behind closed doors in government agencies (of all countries) somebody is working on AI without any constraints or moral guardrails. It's a problem ...

 

[REM]

Wasn't that the same judge who forced Elon to buy Twitter when he realized his huge mistake and tried to back out of it?

That's not how events transpired.

Elon wanted the court to hear about how the Twitter board/CEO outright lied about the facts of acquisition in the first place. The whole "number of bots as the user base" thing? Remember?

And wouldn't you know Kathaleen McCormick ruled on that as well?! Gee, what a crazy coincidence! Not only did this woman force Elon to buy a company that lied about their entire business model, but she's also now ruled that a single shareholder can invalidate his salary.

Justice is a joke in this nation. I can honestly say after this and the level of intentional interference Elon has been getting elsewhere from our government, I am shocked that he hasn't already defected to China by now.

 

[BannedByTMC]

But for discussion purposes, who would you trust?

No single individual but certainly not someone as mercurial as Elon has proven to be.

 

[BannedByTMC]

That's not how events transpired.

He tried to get out of buying Twitter. He "claimed" it was the "bots" issue.

 

[lowtek]

No single individual but certainly not someone as mercurial as Elon has proven to be.

It's happening, 100% not going to stop, genie is out of the bottle ... you have to trust someone, who's it going to be? The list, unfortunately, doesn't include "nobody".

 

[cvalue13]

Who cares who made the plan? Maybe it was his mother. Maybe it was a fart in the wind. We the shared company owners voted by 73% majority to pay the man. Do we the company owners own the company or not? I don’t give a f who Elon knows or doesn’t know at Tesla. He was going to get paid if he made the company owners rich. I wanted it then and I want it now. This “ruling” is a joke and an insult to millions of us company owners. Who the heck is this judge to overrule our majority decision? We will fight this injustice.

I mean, the entire concept of your point is directly addressed and undercut by the substance of the claim and the rationale of the decision:

The core claim is that the comp package was approved by shareholders who were given misleading and incomplete disclosures in a proxy statement.

On the comp determining committee was the then General Counsel of the company who, famously, was qualified for the job only in virtue of being Musk's divorce lawyer. It also included his brother. The list really goes on from there.

To put it mildly, Todd Maron, and Tesla's board generally, is a meme amongst corporate governance and compliance professionals.



So if nothing else, what this case and the outcome REALLY suggest, is this:

If you want to pay your CEO 6 times the combined comp of the next 200 highest paid executives in this United States, you as a company should at least be not so damn dimwitted as to attempt to do so without appointing a majority of independent directors to arrive at that decision.

Let me restate that so that, because it's a really important point:

A company with even 1/10th of a corporate compliance brain, would know that it should do things a certain way if it felt what it was doing could be subject to legitimate scrutiny.

IF the shareholders wanted to give Musk this package, it should expect the board to demonstrate the FIRST clue about basic corporate compliance strategy and optics.

Play stupid games, win stupid prizes.

 

[BannedByTMC]

It's happening, 100% not going to stop, genie is out of the bottle ... you have to trust someone, who's it going to be? The list, unfortunately, doesn't include "nobody".

That's the thing, Elon won't be able to stop or control AI in general, only influence one company. Therefore I don't think he needs to be given any more power over Tesla.

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