Musk has a compensation incentive package worth more than $50 billion, which was ruled invalid by a Delaware Court of Chancery judge on the grounds that Tesla's board of directors failed to prove that the compensation plan was fair. Of course, Musk still has a chance to appeal, after all, with such a huge amount involved, Musk should not sit still.
If the option value of this part of the compensation incentive is excluded, Musk's net worth will drop to 154.3 billion, making him the top of the global luxury rankings.
II. Third. There are some personal speculations about the ins and outs of this matter, as well as the composition of the factions involved in American capital. Welcome to detailed analysis, welcome to like and support.
This matter can be traced back to 2018, when Tesla suffered huge debt pressure from its production capacity.
At that time, Waltz was already empty, Tesla, Tesla almost 28 institutions published Tesla's space research report, and it was easy to say that Tesla would go bankrupt within a few months, although the stock price was also very bad in 2018, but in January 2018, Tesla announced a sky-high price of Musk. Of course, there are several goals for beginners, and each goal includes market capitalization, revenue, profit and other indicators.
For example, Tesla's market value starts from $100 billion, and the $50 billion market value in the United States rewards Musk with 1% of Tesla**, until the market value is $650 billion. If the standard operating income at the end of the period will be equivalent to an increase of 21 times on the basis of 2017, the first is equivalent to an increase of 17 times, which is an increase of 1 billion times. At the beginning of 2018, Tesla's market capitalization was only $59 billion, and many Wall Street institutions believed that Tesla would go bankrupt.
Therefore, Huawei's salary plan is that it may need to provide a key turning point, which is the Shanghai Gigafactory. Hot Engine Plan In July 2018, Tesla's Shanghai Gigafactory landed, and then it took only one year to complete and put into production, which shocked Musk to the speed of light of the Shanghai Gigafactory, and the efficient and high-quality production efficiency allowed Tesla to solve the production capacity at once, and Tesla also got out of bankruptcy. Tesla's stock price is crazy in 2020 and 2021, rising more than ten times in two years, so Tesla has become the largest car company in terms of market capitalization, and Musk has also become the richest man.
Basically, it can be said that the landing of the Shanghai Gigafactory in 2019 and our snow dynamics for Tesla, and then let Tesla lose its own life, Musk will have the opportunity to get this incentive salary. Compared with the beginning of 2018, Tesla's current market value has increased tenfold, and its revenue has increased ninefold.
According to Tesla's current performance, Musk can get a nine-level reward, that is, a 9% stake, and then the private shareholders of the 9 shares you hold will file a lawsuit in October 2022. He argues that the incentive scheme is unprecedented. The high amount of Musk's pressure on the board of directors led to the approval of the compensation bill. In addition, no important information was disclosed to shareholders.
He argues that the incentive scheme dilutes the interests of shareholders and should be ineffective. Although I don't really like Spurs myself, I will list the pros and cons from a third-party perspective. As for who is more reasonable, everyone can judge. Musk is also a controversial figure in the United States, with many fans and black fans. So this matter has a lot of controversy in the United States.
Musk's fans compete, and everyone they know is willing to hire multiple CEOs like Musk, who can accept the same conditions as in 2018. So the value of the company will increase by 1% in six years, and this will receive about 9% of the shares as an award. Musk responded to this, if the CEO of the company accepts my conditions, you must buy the ** of these companies, you can ask the CEO of any Fortune 500 company, it can be said that this kind of performance goal will not be accepted by anyone.
Let's take a look at the other side's point of view. Only shareholders of shareholders are equal to the sky-high price. The tax started with fraud, and they provided evidence that it was Musk, not the board, who first identified the key terms of the 2018 compensation plan in discussions with then-chairman of the compensation committee before submitting a proxy statement to shareholders. This conversation was deliberately omitted. The court of chancery's nominee shareholders hired a team of sky-high lawyers who started with fraud.
They provide evidence that this is the CEO of a Fortune 500 company who would not accept this kind of performance target. Looking at other points of view, only five shareholders hired a team of sky-high lawyers who started with fraud.
They provided evidence that it was Musk, not the board, who first identified the key terms of the 2018 compensation plan in discussions with the then chairman of the compensation committee, before submitting a proxy statement to shareholders. This conversation was deliberately omitted. Judge McCormick of the Yokoping Court ruled that the conversation under review was important information that should have been disclosed. So I think Musk used the controlling influence of his board of directors to push for the passage of this compensation incentive package.
The judge found that the board's compensation decision process was flawed. He pointed out that in particular, the younger brother of this debtor serves as a director of Tesla, and the other members of the board of directors also have a deep bond with Musk.
However, Musk's supporters also refuted this, saying that in addition to the vote of Musk's brothers, 73% of shareholders voted in favor, and it is unreasonable for the court to overturn this vote. What do you say about this? It can be said that the public says that the public is reasonable, and the mother-in-law says that the mother-in-law is reasonable. Personally, I suggest that we, as melon-eating people, don't need to be too entangled, just who has the reason to eat melons and watch the show.
What is even more noteworthy behind this incident is that there is a lot of melon to eat behind the factional struggle involving American capital. This is an incentive plan, you have to reach the goal to be rewarded, to reach the goal, that is, Tesla's stock price ** more than ten times, Tesla shareholders should have made a lot of money, not to mention that they only hold 9 shares of private shareholders. Such private shareholders only need to go up when the stock price rises.
Normally, while this compensation does dilute the interests of Tesla's other shareholders, it has a greater impact on some of the other major shareholders. Those major Tesla shareholders did not come out to oppose this action plan, but only held 9 shares of private shareholders to sue, which is obviously not normal. I think this should be something that some capital forces want to do, and Musk is still involved in some capital struggles in the United States.