Man owns 9 shares

Well, if they are not happy with the lawyer, they can sue him for excessive compensation.

The current market/economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.

The board voted for it because he stacked the board with cronies and yes men, no other reason. That is a big part of the lawsuit.

You don't understand fiduciary duty and duty of loyalty, director conflicts of interest, etc.

Could’ve bought another Twitter with that

Honestly, the package seems fair given the market cap, but that probably speaks more to how disconnected the share price is to reality rather than anything else.

The guy won his case because the board was colluding with the CEO for the pay package/ money. That's it really. The fact that people "shouldn't be surprised" is not a valid point. I agree with the irony of the lawyers wanting so much for winning the case; however, your point of saying "no surprise to anyone" doesn't hold up in court. Boards are supposed to be independent entities representing the owners. They can have some relationships with the CEO, but they are supposed to keep them in check. A CEO writing out his own pay package and the board approving it is collusion. That's the simple of it.

Not an Elon fan, but a contract/deal is a deal. He did exactly what was agreed to.

Elon Musk must hate Delaware rn

You're mixing up two different issues here Hari, the pay package issue is not a robbery far from it. the lawyers' compensation is a matter of discretion. The pay package issue is an issue of corporate governance and fundamental fairness to minority shareholders. The board's first duty is its duty of care, its fiduciary duty, especially for its minority shareholders. The package is void at the very moment creation, because the board is ridden with conflicts of interests which opens up a minefield of fraud and misrepresentation. They failed to exercise, at the very moment of creating the package, the oversight and governance expected of the board. which is at the heart of the matter, prior to any talk of performance. It is fundamentally at a legal level unfair. all the things you mentioned in the video are irrelevant and confuses things. You also failed to mention that 4 of 8 board directors are very close associates of Musk. The ruling and experts also criticized Tesla for having corporate governance unsuitable for a publicly listed company. You also failed to mention that there was deliberate misrepresentation from the board to the shareholders because the operational and financial targets set are readily achievable for the company within 2-3 yrs, not 10 yrs, which misleads shareholders into thinking its a herculean tasks when its not, its a pump and dump with extra steps by elon and gang. There are many examples of Tesla Boards dereliction of duty. The lawyer's fees are an entirely separate matter based on lawyer and client relationship which determines the fees, you are trying to insuate the 5.6b v fee vs 56b pay is non sense.

the kicker is... even Mr Deeds knew that the great thing about being a share holder, is that no matter how many shares you hold, you have a voice. Thats the american way, if you have a problem with it 🤷‍♂

Scummy lawyers should never get that much foe these big cases.

From my understanding, he has practically filled the boardroom with friends who pretty much agree with everything he suggests, so there is a conflict of interest. Awarding him a pay package larger than the company has ever made in profit is not good optics. It's just a joke, to be fair, and the amount is ridiculous.

if he didn't get money, how did he buy twitter?

8:21 Musk did not found Tesla.

He stacked the board like crazy and had connections with all of them. Thats why the board approved the plan

Bruh had 9 stocks and was worried 🤣🤣🤣

10x'ing a company is virtually impossible. 56B is a lot but 5.6B is certainly deserved with voting shares of 56B...

Lmao so much detail is left out here. Bad coverage. There was already information out there that suggested all of the milestones would be hit easily with internal reports.

He battled the board on this once already when he threatened to take it private at 420 with Saudi backing. He accused the board of shorting the stock to stop is comp package from triggering. The issue with the package wasn’t so much its size, but the nature of the board and if it was independent or not. Comp committee has to have a makeup of independent members for this exact reason. Arms length negotiations and assessments on behalf of the shareholders.

Richard must be fun at parties.

8:36 That's simple. The Board Has to act in the shareholders best interest NOT the best interest of the CEO. This means that they weren't trying to negotiate based on what would Be best for the shareholders - the Minimum viable compensation they could have given to Elon. And the Other Problem is that even according to Tesla's internal expectations, Elon would have already achieved 3 or 4 of These milestones (I don't remember the exact Number). That means that Elon could already expect quite a Bit of that compensation. Because of this, these weren't hard milestones for him to achieve, or rather the First were basically guaranteed.

EBITDA stands for 'Earnings Before Interest, Taxes, Depreciation and Amortisation'

I think the most shameful thing will be if the judge actually side with the lawyers.

No wonder he's been railing against Delaware C-corps

Elon Musk originally managed to talked them in a crazy pay package that his marketing managed to make a huge win fall for himself and unlucky for Elon the board managed to get the court to bring this crazy pay package down.

A significant factor in the case going the way it did was the lack of independence of the board members. They're all buddies of musk. And that's not how a board is supposed to operate when it is a public company.

Elon took the stock from $400 to $190 after it inflated during the pandemic, leveraged stock to buy twitter then lost half of it, then asked to dilute the shares by $56B or he will start a rival company 😂

"Robbed" lmao oh no, somebody think of the poor billionaire!

Lemme exppain those points 1. By How easily the goals would be met, he meant that 3 of the operational milestones would have been met in just two years 2. Saying that he already has a big enough stake in tesla that he doesnt need more 3. Simce hes an insider he knows whats up and designed it to his favour 4. All the board members ate made up of family and friends

The narrator missed a lot of context and naunces of the the case

I'm not from the US but isn't it possible to go to a higher court or something?

I think that compensation matters a lot to Elon. Buying Twitter was a massive investment, and it's not like it's paying dividends.

It was declined because it was irregularly granted. The board should've been more neutral, and Teslas board isn't neutral

could you please make a video talking about the fall of the Dell XPS laptop line, or consider it?

He wasnt a founder. He BOUGHT IN.

im on the judges side. tesla hasn't generated 56 billion dollars in profit since it's inception. not to mention the board was packed with his friends and family.

It’s still excessive. The board was in the tank for him from go.

Its not shareholders but 1 shareholder with couple of shares lol. Its obvious scam. And the lawyers are asking for almost as much money making it just crazy.

Elon is NOT the founder.

You missed out on some detail like compensation plan is post pone during tesla production problems only when the internal future focus is looking good elon propose another plan and how board didn't disclose some important detail to shareholders for decision

It is like giving John Wick an impossible task.

How can i prevent Elon from getting his next pay package with my 1 share guys?? 😂

I don’t think Elon deserved it at all. Free cash flow and return on invested capital matter more than stock price. And those KPIs are currently not high enough to justify a 56B payout.

I didn't understand, did he or didn't he get the $56B?

*My Only News Sorce I Need ❤😊🎉*

he deserves it he fires people who's loyal to the company for no reason his money got a head of him and become arrogant

In Jamaica, we call this "badmind!" Pay the man! If Elon were American-born, would the outcome of the case be different?

Richard is the Hero of this story

Interesting, you are clearly pro Elon in this video.

A deal is a deal! It's the basis of civilization, without honoring deals, debts and ownership we all collapse into a free for all. Imagine if he knew the future back then, would he be bothered to go through the immense troubles that he went through? Would he devote is full attention and time into making a great company, providing value to shareholders, providing much wanted products to consumers against all odds (every electric car model by any brand exists because Tesla made the market for them). What about the next person in the same position? Will we start seeing less innovation and wonder why no one solves hard problems anymore? Tesla shareholders prefer to spend money to motivate a CEO rather then spend money on unproductive lawyers, those 56 Billion already paid for itself.

One could argue that Tesla is also a tech company which does make it more possible to reach those goals compared to car companies. Anyway I got no idea what the law is on the matter, so it can go either way “in my book”.

No honest board gives out a free "you get tenth of value" if weirdly our stock quadruples. That's not standard. And process matters, a biased board rushing thru negotiations is EXACTLY what is improper in corp law. So yeah if 5% of stockholders dislike this, if gets undone. No corp lawyer is surprised by Delaware court. We don't run big trillion doller corps like a fraternity or mafia family, we want analysis and care. Why do CEOs get chance at trillion dollar payday, no other employee does.

Too hard to understand needs for those unfamiliar with big tech boards procedures about compensations

Seems unfair

It's one shareholder. One. And he didn't have any damage. Far from it. He made ten times the money he invested. It's all a scheme triggered by the lawfirm that wants to profit off of it.

One of your great videos recently. No useless history lessons and straight high quality information

That is insane.

If the terms of the compensation were planned ahead of time the judge overstepped his authority….the judge’s job is simply to enforce the contract. The judge should be removed from the bench, it’s not his job to determined what’s fair compensation.

Nobody should get paid. The lawyers are vultures for trying to get 5.6 billion out of the company. And the guy who filed the lawsuit holding 9 shares (or whatever insignificant amount) is also a vulture. It’s true the the amount of the compensation was excessive and the board was probably favorable to him. But if it happened in 2018, then the people sueing should have been significant shareholders in 2018. 2019 at the latest. Anyone that didn’t agree with the boards decision could have sold their stock years ago

Why did Elon Musk not call us to take his case for him? Its still not too late to call me to take up his case, we will definitely win for Elon Musk, right or not, rigt for sure! Tell him to call me to take his case for him , tell him to arrange for me to be there we will win, then he can at last travel with me wherever he wants to, in Gods eyes we are husband n wife, n i can win cases for who Jesus choses to stand for, get it? Call n arrange me to be by his side, NOW! Love u ❤❤❤

I usually side with the little guy, but this is an exception.

Taking into account the second point maybe Vanguard Group should work for free for Tesla because they own so much, or every shareholder should dedicate his life, 80hours because they have equity. This is absurd (like he's rich enugh) Talking about moral grounds I belive this is the best way for a CEO to be payed, you get what you bring back to investors, if your company is sh*t you don't get anything, if you 10x the stock for shareholders you deserve a part of your progress.

He should of gotten paid.

It's not theft, it went through the legal system.

The lawyers will not get it. Most likely they will get about 400 to 500 million.

you could the package was well deserved, but somehow the actual outcome feels like justice.

how did this case was won because legal ground side elon and further more this dude would increased his stake in tesla isnt that a good thing

Elon manipulates lot of things to achieve those KPI’s, he’s very good at it.

The final point fails spectacularly here. Standard attorney compensation for judgments like this usually start at around 1/3 of the amount. Not that I want to defend the legal profession's exorbitant fees, but If anything, they asked to be compensated less than a third of the standard rate soooo...

I mean I agree Elon has the right to get those money and he should geet them, however I understand that a further 10% dilution is heavy on shareholders

The first 2 payments were a guarantee from Tesla's own predictions. How much time was Elon committed to Tesla? The only way Tesla justifies it's current valuation is if they get Full self driving to work. That isn't going to be happening any time soon. Even if it was "finished" tomorrow how would you implement it? Will the regulator sign off on just having a vision system or would they require 2 systems? If you are drunk and getting your car to drive you home but it got foggy what would happen? You can't drive and the car can't drive. There are so many problem to solve once you actually have the best system you could get. FSD won't be happening any time in the next 10 years so is Tesla worth current value? Will sales keep increasing at the current rate? Between Elon being Elon and all the easy electric car sales being completed it will keeping getting hard to sell an unlimited amount of electric cars.

This entire thing is just so bindbogglingly stupid. No, never America...

Calling a pump and dump scheme shareholder value is not exactly right. What about the shareholders when the balloon burst? Probably it technically still value for the short stock holders.

First as always!! For some logics

I don't like Elon (or any billionaire for that matter), but I appreciate @LogicallyAnswered unbiased approach, not truly for or against Elon, just showing the numbers and explaining the situation from onset. Too many KZfaqrs go in from the angle of Elon is amazing -_-.

Friendly reminder, if you bought in 18, at the peak you where up 1600% or just shy of 700% now. Yea, if a dude says he can 7x my portfolio for 54 billion. I'd ask him, why are you asking for my permission. Just do it.

There’s something off about this intro…I’m gonna have to edit this comment after watching the full vid but you’re framing the lawsuit based on his compensation package being excessive which that court wouldn’t normally hear a case on (it’s not really their business) unless there’s a valid argument that the compensation package was not agreed to in good faith. From what I heard those KPIs that made this package seem “impossible” to achieve mislead shareholders because internal projections had already forecasted a few of them being hit in the next few quarters, plus the board was(for lack of a better description ) operating to please Musk. I’m going to have to re-read into the case and I may be wrong about those facts but this is the first time I’ve heard someone say the outrage was based off the comp size, which again, is not a normal thing Delaware Courts will intervene on so long as the comp package is in good faith. Love to hear anyone else’s opinion tho! Edit: actually I can already tell from the amount of likes the positive comments for Elon vs people pointing out the actual issue that this is more of an Elon Elephant walk vs a critical analysis of the case. If you’re reading this, wouldn’t hurt to actually read the case files or at least find a more neutral source.

Hi hari.. Engaging topic you got here

This is so against what I had read elsewhere about how close the board is to elon, and how they themselves projected it was on track to be met, sorry but that's an unsubscribe

Really great different perspective video that the media should pick up on. Great job!

a loss is a loss, he should just take it like a champ

it is a pleasure to listen to mastodont

Every time Elon throws a tantrum, an Angel gets its wings.

Have the lawyers gotten the 5.6B paycheck? who has to pay it anyway, Tesla or that board member who filed the lawsuit?

you need to watch some thunderf00t

What about the investors that put in millions of dollars but now r billionaires .

0:50 this is why shareholders signed off.... I thought "ya... Sure.... I'll pay you that much if you can grow the company that fast. You'll NEVER DO IT but sure.... And then he did it..... Made me money.... If I hadn't doubted him and put more in, would have made me more, oh well.

That 9-shares-owning loser drummer is infuriating. The idea that Elon shouldn't be paid because he "doesn't need it" is the stupidest argument I've ever heard. It's not about what he needs (and who the hell gets to decide what someone else "needs" anyway?"). It's about what he deserves, what he's owed, what he negotiated for, and what he EARNED.

This is a diferent perspective than I have heard and it makes a lot of sense.

no, he wasnt robbed you sad sad man

Great video as always

Very well explained.

People are happy because Elon musk got robbed... But this sets precedent, and maybe in the future, they will claw back employee earnings. This is very short sighted for people to cheerleader this, when once precedent is set, companies could later say your bonus was "excessive" and sue you in court. And make it hell to know your compensation.

Dear LA, Thank you once again for a well developed and researched piece. Of course you are correct, there really was no law that should have prevented Elon from receiving his contractually agreed to package. Chances are this decision will be reversed in a higher court, should Musk ( or The Board ) wish to push the decision. However what is morally ( and socioeconomically ) untenable one year, can quite easily become illegal in the next. For the moment your response is perfectly accurate, however the public and the Media re-action to this fact was never about Elon, The Board, or The Laws, as the character once said to a military administrator, "...Listen to me, Major Walsh, it is an événement sociologique.....".

i agree, as much as i think billionaires have way more than their shares, but it was agreed upon and nothing was said while he was pulling all his weight doing all the work, but then afterward they say well you aren't worth that much, I remember being told a story of a lock smith being call to open a lock before the owner forgot their keys, the locksmith was promised 100$ for the job, the locksmith went and open the lock in less than a min, the house owner said the locksmith only spend less than a minute so he was only willing to give him 10$ saying he only spend less than a minute for 10$ is tens of times more than min wage.

Bruh Elon Musk completely ruined twitter. It wasnt that good in the first place, but he still really did a number. Btw love the channel bruh

Despite his many eccentricities, Elon is undoubtedly eligible for this pay package. He literally created the value he is now asking a share of. That was the deal to begin with. I don't see why that should be unacceptable to the board.

I saw another channel make a similar video on this a month ago (this one if anyone is interested: kzfaq.info/get/bejne/sLKhdJlpuJqlmWw.html) and it had like the opposite conclusion, that the money was ill deserved. I guess it's just a reminder that even though both this video that that video reported only facts, with complicated scenarios you can really cherry pick points to support either side.