The judge vetoed Tesla's 400 billion salary, Musk was furious, or moved Tesla out?
Who decides on the compensation of executives and owners of private companies? The board, of course. If the Board considers the compensation to be reasonable, then it is reasonable. If the board thinks it's unreasonable, it also doesn't make sense.
After all, the remuneration that these private companies give to their employees, managers, or owners depends on earnings, profits, etc., which are recognized by shareholders.
However, some time ago, an interesting thing happened in the United States, a Delaware judge announced that in 2018, Tesla paid Musk 50 billion yuan (about 390.Rs 670 crore) was cancelled.
How do judges monitor corporate compensation? This dates back to 2022, when an investor questioned Tesla's high compensation, claiming that there was a conflict of interest on the board.
The investor then sued Tesla, but to his surprise, a year later, a Delaware judge ruled that Tesla's compensation system was unreasonable and that it had to be restructured.
Musk's current net worth is about 210 billion yuan, which is the richest person in the world, but 50 billion yuan of this is included, and if this wealth is removed, Musk's personal wealth will shrink by 25% to only 155 billion yuan, ranking third in the world.
For Musk, his net worth is just a number, whether it is 155 billion or 220 billion, he has enough money to squander, but it is absolutely impossible to take his own money from him.
Musk was so angry about this that he even threatened to remove Tesla from the earth. He also suggested that those who started a business in Delaware should go to Nevada or Texas.
Musk also did a poll on x**, asking people if they wanted to move Tesla's headquarters to Texas, and 90% of Internet users supported him.
Of course, Tesla has the right to appeal or reconsider this new compensation plan, but Musk can't accept it, so what should he do now? Will he really sell Tesla? Nobody knows.
Not only this incident, but netizens across the country have also expressed their opinions, on the one hand, they are shocked by the salary of a private business owner, on the other hand, they are surprised by the unreasonable judgment of the court, and on the other hand, they are wondering, can China do this?
After all, wouldn't it be even more unconscionable if some companies were still in the red, and executives were paid high salaries with no regard for the future of the business?