An approval judgment on the official approval of a regulation in a case presented through the Tesla shareholders opposed to the members of the Board of Administrators who will now have to retreat the actions, the species and abandon the characteristics of acquiring a price General of a general price $ 1 billion.
Let me start this article with an CEO of Tesla, Elon Musk:
Tesla will never solve a case in which we are in him and will never challenge a case in which we have made a mistake.
Today, Chancellor Kathaleen McCormick approved a settlement agreement between Tesla and all members of its board from 2017 to 2020 and the City of Detroit Police and Fire Retirement System on behalf of Tesla shareholders on what shareholders saw as superior compensation.
The agreement reported for the first time in July 2023, but only officially approves and informed us some more details.
The idea of the shareholders that the members of the Board of Administrators of Tesla remained excessively with a lot of millions of dollars between 2017 and 2020, when the average remuneration of a member of the Board of the company S&P500 is only north of $ 300,000 array
According to the agreement, the members of the Board agreed to go back $ 277 million in money to Tesla, $ 459 million in inventory functions and renounce $ 184 million in inventory functions granted for 2021-2023.
That increases to almost a billion dollars.
The board members include Kimbal Musk, Elon’s brother, Brad Buss, Ira Ehrenpreis, Antonio Gracias, Stephen Jurvetson, all close friends of Elon Musk and people who have financial dealings with Musk outside of Tesla, Linda Johnson Rice, Kathleen Wilson-Thompson, Hiromichi Mizuno and Larry Ellison, the co-founder of Oracle Corp and also a close friend of Musk.
Even if you believe that Tesla’s value is driven by an insanely talented executive team, and even if you believe that team deserves outsized compensation as a result, the Board has little/nothing to do with the operational activities that drive the company’s success. Looking after an audit committee is just not that significant a role in the company’s valuation. In fact, you could argue that the board over at Nikola deserves the big bucks! After all, they were exposed to the liability of Trevor Milton and tasked with trying to corral a CEO who lied incessantly and misled shareholders, regulators, and the public and made ridiculous claims about his product’s capabilities and… okay bad example. You get the point. Boards are not worth that much.
Within the framework of the regulation, Tesla or the Board of Directors admit any representable act.
Musk received no refund within the framework of the Board of Directors, however, he worries in a similar case in his own $55 billion CEO refund, which canceled the same pass after finding that he failed to negotiate or introduce shareholders to Smart Faith.
The board members who won this “overpayment” were also revealed to be the one who “negotiated” the Musk CEO’s refund package.
The case is heading to the Delaware Supreme Court, as reported earlier today.
Fred is editor-in-chief and a senior at Electk.
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