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Joined 1 year ago
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Cake day: August 24th, 2023

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  • The shareholders chose to do it, it’s their company, they can do whatever they want with it (as long as they weren’t misled as the judge has ruled they were).

    Trying to control what the shareholders do with their company like that is not the way to solve a problem. And if you don’t own any voting shares, then you have no reason to complain about what they decide to do.

    The payment comes out of their pocket, by the devaluation of their stock, when the options are issued and vested. They went into it knowing they’d make a shit load of money if he pulled it off, and he’d make a shit load of money too. The stock has 25x’d since the package was created.

    Edit: Just to be clear here - A better way would be through a high tax bracket that would eat the vast majority of that away forcing him to sell most of the shares (or I guess alternatively sell SpaceX shares, it’d be his choice), but keep in mind it’d be at the rate when each set vests, so it’s not a tax bill on 55b, it’s a series of tax bills on smaller amounts.




  • A Delaware judge recently invalidated the pay package, citing insufficient shareholder approval.

    I don’t know if this is the article (its pay walled), or AI since it’s a summary, or maybe OP, but this is a terrible reporting of what happened.

    The pay package was supposed to be independently created by the board, but it was found out that Elon had a heavy hand in proposing it, including the people helping him craft it. Now, I don’t think this is bad per say, but then the board was supposed to independently vet it, but the board wasn’t really deemed independent, and who they used had ties to Musk. Further, it wasn’t properly disclosed what involvement Musk had in crafting the package in the first place.

    The failure to properly disclose all of this made the shareholder vote void. Had they disclosed it, and had it been approved, it would have been okay.

    It had nothing to do with not having insufficient shareholder approval.