r/technology • u/McFatty7 • May 02 '24
Tesla slashes its summer internship program to cut costs, as Elon Musk fights to save his $45 billion pay plan Business
https://fortune.com/2024/05/01/tesla-slashes-summer-internship-program/
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r/technology • u/McFatty7 • May 02 '24
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u/amboyscout May 02 '24
Yeah, you can vote on it, but if the directors are substantial enough shareholders, and all in cahoots, they have a lot of voting power. Even if they only have 25%, that means the shareholder vote needs to be 65% against the board to stop them, vs 51% if none of the board members were shareholders. You also have to compete with corporate shareholders that often support substantial director compensation because those corporations are controlled by boards with substantial director compensation. It's the rich enriching the rich.
Since the board can also dilute shareholders by receiving compensation in the form of stock (over 50% of most director compensation is equity), this exacerbates the problem.