Musk doing three things to improve Tesla’s future.
Dismiss the entire team building out the Supercharger network.
Dismiss everyone working on new vehicles.
Dismiss the public policy team – the folks who would be working with regulators to approve FSD and the robotaxi.
I’d give Elon a $50 Billion compensation package - with vesting at a $10 Trillion market cap.
Also saw that FSD is now priced at $8,000, big discount to the previous $12,000.
intercst
And yet, I think the past deal is exactly the point. Whatever the circumstances, he was promised that money if he met certain goals and he worked for a good amount of time meeting those goals and therefore it is understandable for him to think he earned that money.
Doesn’t matter - which is why I am not arguing that point. The negotiations of the deal were determined to be faulty. Doesn’t matter if the deal was $2 billion or $100 billion.
I am asking what people think today, with proper information and full 20/20 hindsight; and perhaps with an eye toward the future.
I think how people answer THAT question is FAR more informative and enlightening to how they may have voted in 2018.
I would say the limit is where my stock price stops. So when the compensation package was laid out and lets say I had bought the stock at 1 dollar, Then Musk gets 30,000 shares at 1 dollar for compensation if the company hits 600 billion by 2024. Now lets say its 2024 my stock is worth 300 dollars a share and Musk gets his 30,000 shares. How is that not fair?
Andy
I think that is pretty fair and transparent. I hope you do to since it is your example.
Let’s do the math: 30,000 shares at $1 is $30,000 in comp.
Multiply that by $300 ($300 share price in 2024), that is $9,000,000.
I’d vote for that. Seems very fair. Heck, underpaid.
I don’t see that as a reason why he would be worth 6,222 times as much.
Well then you shouldn’t have any problem with Musk’s pay because that is essentially what happened. They told him he could have so many shares in 2018 when the shares were worth around 20 dollars and then told him he would only get them if the market cap was above 600 billion.
Andy
Quibble - that’s true only of the last tranche. The first tranche vested at a market cap of 100 billion (from $61B), with another one each $50 billion beyond that. So Musk would have been one of the highest paid CEO’s in history even if the stock only increased to $100 billion in market cap.
LOL, good try. Not even close. 
The 2018 plan included 12 tranches, not a single tranche as your example. Each tranche increased the multiplier of compensation. So, instead of 1%, it became 6%.
I don’t want to “relitigate” that topic in this thread but needless to state, the two scenarios are not the same.
Yet there wasn’t any quibble at 100 billion, It seems the problem comes in the higher it goes. I am sure nobody would have said anything if Tesla was sitting at 25 billion. They wouldn’t be begging a Judge to give Elon money because the contract he signed didn’t work out.
I am not a Musk fan boy, I can see his flaws but this smells like someone crying because somebody else did better than they ever could. Jealousy is a terrible thing to behold.
Andy
I wasn’t trying to be exact, just like you weren’t. But why didn’t you speak up about it after the first tranche? The second tranche etc. Why was it only the 12th that it becomes a problem.
Or project.
Who made that statement? I certainly didn’t.
Again, I have no desire to relitigate 2018. I did not vote (I don’t recall if I had shares then) on the plan so my opinion about it at that time is irrelevant. I can say now with 20/20 hindsight that I agree with the judge that it was faulty and I would not vote for it now if the metrics were the identical going forward. If they want to pay him a flat percentage of shares, like in your example, I probably would be OK with that (assuming full disclosure of course). I would NOT vote for some scale that exponentially increases the compensation from 1% to 6% of the total value of outstanding shares. I don’t think that level of dilution is in my best interest.
Not really - the lawsuits were filed immediately after the compensation package was granted, alleging that it was far too generous and gave Musk too high of rewards. Long before anyone knew whether the triggering events would happen or not. But it’s not accurate to characterize this as a package where Musk either had a longshot come in, or nothing. He got his first 1.7 million options at a $100 billion cap. If only that first tranche had vested, I expect that there would have been some complaining if Musk got himself an $800 million payday for underperforming the market - but we’ll never know.
No you wrote this.
How is he not worth $100B? Why not $1 trillion?
Now tell me, How can you think he is worth 1 trillion dollars?
Andy
??? I think you are greatly confused. I never made such a claim.
I asked that question in response to someone that claimed, “How is Musk NOT WORTH $50+ billion?”
But I guess to actually answer your question, if Tesla became a $100 trillion company, then yes, I think Musk or any CEO might deserve 1% of that.
I’m the one that asked the $50B question. I’ll ask it again. If Tesla shareholders believe that Musk is the only one who can make an electric car company with a 50 P/E a profitable investment, why wouldn’t they pay Musk whatever it takes? What is the point of keeping to the traditional CEO pay scale if it means that Musk leaves and Tesla goes the way of Lucid?
I would have agreed with this last summer with that version of FSD. It was glitchy and made me nervous quite often and needed intervention periodically. But the current version that I’ve been using is superb, I have much more confidence in it, and it is clearly less stressful to drive around with it on. Not only less stressful, but even relaxing to a great extent. I’ve been using it nearly every time I drive anywhere, even for short trips of under a few miles. Only part that annoys me somewhat is that it is overly cautious at 4-way stop signs, even when no other cars are nearby. The current versions are truly a marvel to behold. Obviously not perfect, and obviously none of these cars (except maybe CT someday) could ever truly drive themselves, but still a remarkable achievement of driving almost like a human does … minus the very common human mistakes.
EDIT: I just received a software update last night and had it drive by a nearby 4-way stop sign and sure enough it seems to be doing it more naturally now. Almost no hesitating when not necessary. I will drive by there again today a few times to see how it is in the daytime with more traffic (assuming I still have FSD active today).
And, of course, without a though to their own gain. Such beautifully equitable thinking, just pure justice.
Right!
The Captain
Who thinks that? Not this shareholder.
And pay him whatever it takes? So you have no upper limit? Give him half the company is that is what it takes to keep him on?
Do you think you might have lost objectivity?
I would argue they are already on that path. But… what has Musk done LATELY? Forget about everything pre-Model 3, because since then, in my eye, the company has been faltering. Semi is a dud. CyberTruck is a disaster, selling at half the rate of Ford, which isn’t selling well to begin with. Delays on the Roadster which the company arguably doesn’t need. FSD has been nothing more than a “next year story”. The Model 2, won’t believe it until I see it.
Oh, and energy. Solar roofs and power walls aren’t selling, and I’ve heard nothing but bad things about solar roof installations.
I would argue Tesla would be better off if the “independent” board fired Musk.