Articles tagged with "corporate-governance"
Tesla board chair calls debate over Elon Musk’s $1T pay package ‘a little bit weird’
Tesla board chair Robyn Denholm defended the proposed 10-year, $1 trillion compensation package for CEO Elon Musk ahead of a shareholder vote in November. Denholm, who helped assemble the plan, emphasized that the package is designed to motivate Musk through extraordinary challenges tied to extraordinary compensation. She downplayed the focus on the dollar amount, suggesting Musk is more interested in the voting power that comes with the Tesla shares rather than the wealth itself. Denholm stressed that the compensation plan is forward-looking, based strictly on future performance goals, and Musk will receive nothing if those goals are not met. Despite the seemingly massive size of the package, she framed it as a necessary incentive aligned with Tesla’s ambitious future targets. The article also notes some skepticism about the feasibility of Musk’s past promises for Tesla, implying that the compensation plan is tied to achieving new milestones rather than past achievements.
energyTeslaelectric-vehiclesrenewable-energyCEO-compensationcorporate-governanceElon-MuskTesla Board Offers $1 Trillion To Get Musk To Pay Attention To Business - CleanTechnica
The Tesla board of directors has proposed an unprecedented compensation plan for Elon Musk that could make him the first person to earn $1 trillion from a single company. The plan, detailed in a recent SEC filing, ties Musk’s payout to achieving 12 market capitalization milestones—culminating in a company valuation of $8.5 trillion within ten years—and 12 operational goals, including selling 20 million vehicles and delivering one million Optimus robots. To qualify for the shares, Musk must remain at Tesla in a senior executive role, though he does not have to be CEO, allowing him flexibility to pursue his other ventures such as SpaceX, xAI, Neuralink, and the Boring Company. This compensation package follows controversy over Musk’s previous 2018 deal, which a Delaware judge ruled excessive and harmful to shareholders. Tesla recently amended its bylaws to prevent minority shareholders (those owning less than 3%) from suing over matters like executive pay, effectively limiting challenges to Musk’s compensation. The
robotenergyTeslaElon-Muskautonomous-vehicleselectric-vehiclescorporate-governanceThe Tesla Ethicist: Should Tesla Shareholders Rebel Against Musk's Pay Raise? - CleanTechnica
The article discusses concerns from Tesla shareholders regarding CEO Elon Musk’s recent compensation package, which includes nearly $30 billion worth of shares granted without clear performance conditions beyond maintaining a leadership role. This move comes amid Tesla’s declining vehicle sales and stock valuation, raising shareholder apprehension about whether Musk’s pay is justified. Musk now owns about 16% of Tesla, valued at roughly $150 billion, contributing to his status as the world’s richest person with a net worth of $398 billion. Despite rumors of a potential successor, the Tesla board approved this substantial share grant, aiming to incentivize Musk to remain with the company. Tesla’s chair Robyn Denholm, who has personally profited significantly from Tesla stock options, supports the decision, emphasizing confidence in Musk’s continued leadership. Critics, including former US Labor Secretary Robert Reich and New York City comptroller Brad Lander, argue that Musk’s compensation is “obscene” given his perceived lack of focus on company responsibilities and Tesla’s recent performance struggles
energyTeslaelectric-vehiclesCEO-compensationcorporate-governanceshareholder-activismstock-valuationFaraday Future faces potential SEC enforcement action after three-year probe
The Securities and Exchange Commission (SEC) is poised to take enforcement action against electric vehicle company Faraday Future, its founder Jia Yueting, president Jerry Wang, and two unnamed former employees following a three-year fraud investigation. The SEC’s probe centers on allegedly false and misleading statements made during Faraday Future’s 2021 merger with a special purpose acquisition company (SPAC). The company disclosed receiving “Wells Notices” indicating the SEC staff’s recommendation for enforcement, which could include injunctions, fines, disgorgement, or other penalties. Faraday Future and the executives plan to contest the action, arguing it is unwarranted. The investigation began shortly after the SPAC merger when new board members raised concerns about misleading disclosures, Jia’s control over the company, and questionable financial transactions involving Jia-linked entities. An internal probe confirmed these issues, leading to Jia’s sidelining and Wang’s resignation after he refused to cooperate. The board shared findings with the SEC, which issued subpoenas starting in
energyelectric-vehiclesSEC-investigationFaraday-FutureSPAC-mergercorporate-governanceregulatory-complianceTesla: Pigeon CEO, Overcompensated Captive & Useless Board, Failed Targets - CleanTechnica
The article critically examines Tesla’s recent challenges, focusing on leadership and governance issues. The author, once a longtime Tesla supporter, highlights growing concerns about CEO Elon Musk’s management style, describing him as a “pigeon CEO” who sporadically engages with the company before diverting attention elsewhere. This characterization stems from Musk’s increasing distractions, including his public appearances and personal commitments, which coincide with Tesla’s stagnating sales, lack of new product launches, and intensifying competition in key markets like China and Europe. Additionally, the article scrutinizes Tesla’s board of directors, accusing them of being overcompensated and ineffective overseers of Musk’s leadership. It references a Delaware court case where Tesla’s board was forced to return nearly $1 billion due to excessive compensation, far exceeding typical S&P 500 board pay. This exorbitant remuneration, coupled with the board’s reluctance to challenge Musk, is portrayed as a key factor in Tesla’s recent underperformance, including missed financial targets and declining
energyTeslaelectric-vehiclesElon-Muskautomotive-industryclean-energycorporate-governanceTroubled startup CaaStle is now facing two new lawsuits and more allegations
CaaStlestartup-lawsuitsfinancial-misconductfraud-allegationscopyright-infringementfashion-industrycorporate-governanceA Tesla board member actually bought some stock
Teslastock-purchasecorporate-governanceinvestmentboard-memberJoe-Gebbiafinancial-news