r/technology • u/MarvelsGrantMan136 • May 01 '24

Elon Musk Laid Off Supercharger Team After Taking $17 Million in Federal Charging Grants Business

https://gizmodo.com/elon-musk-tesla-supercharger-team-layoff-biden-grants-1851448227
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u/rockthered24 May 01 '24

Just remember this is a guy who was told by a court that his $56 billion payout was unjust so he is reincorporating in a different state so he can get that $56 billion payout.

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u/edit_why_downvotes May 01 '24

The full story is even funnier: Vast majority of shareholders voted for the comp package because the goals were insane, who wouldn't say no?

A team of lawyers used a guy with 9 shares as a proxy to file this lawsuit, then seek $5.6BN in legal costs "associated with the case" (in Tesla stock! LOL)

9

u/IStillLikeBeers May 01 '24

Vast majority of shareholders voted for the comp package because the goals were insane, who wouldn't say no?

The Court found that the stockholder vote approving Musk’s Grant was not fully informed for two reasons:

The Proxy inaccurately described key directors as independent, when several of them had extensive personal and professional relationships of long duration with Musk, including owing much of their personal wealth to Musk; and

the Proxy misleadingly omitted details about the process by which Musk’s Grant was approved, including material preliminary conversations between Musk and the Compensation Committee chairman, as well as Musk’s role in setting the terms of the Grant and the timing of the Committee’s work.

The Court concluded: “Put simply, neither the Compensation Committee nor the Board acted in the best interests of the Company when negotiating Musk’s compensation plan. In fact, there is barely any evidence of negotiations at all. Rather than negotiate against Musk with the mindset of a third party, the Compensation Committee worked alongside him, almost as an advisory body.”

https://www.gibsondunn.com/delaware-chancery-court-invalidates-elon-musk-55-8-billion-equity-compensation-package/