Appears Glass Lewis & Co currently maintains approximately 37% of the market share for proxy advisory services - but does that mean that all of their clients vote as per Glass Lewis reports recommend? If so, given they collectively advise $20 trillion worth of assets, would someone please explain why this is not toxic to a free market.
Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says
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Re: Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says
#22They should probably be spending that money on building cars.
I doubt that "more money" would make much of a dent on what Elon's motivations really are.
Re: Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says
#23The article doesn't go into much details of the stock award. Musk is proposing not taking a salary for the next 10 years and receiving a 1% stock award each time he meets some insanely aggressive milestones: https://cdn.teslarati.com/wp-content/uploads/2018/01/Tesla-C... http://ir.tesla.com/releasedetail.cfm?releaseid=1054948 I'm not a TSLA shareholder, but tying CEO performance to company performance rather than an…
Musk already owns tons of Tesla story and should be motivated by that. There's absolutely no evidence that additional equity would motivate him more. On the contrary, there is plenty of evidence on the diminishing marginal utility of wealth. Like much CEO pay, Musk's pay package is more about status than about motivating him. Or is someone really going to try to make the case that he's kinda half-assing it right now?
It feels good to get rewarded for a job well done. Just sayin'.
Re: Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says
#24Wasn't Tesla having revenue problems not too long ago? Seems like someone is looking to flee a leaky ship by opening up some new ones.
Re: Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says
#25There should be some sort of law that prevents this. Musk's companies have taken over 5 billion in government subsidies, why are my tax dollars going towards the creation of billionaires?
GM makes more off the subsidies than Tesla. Does that bother you too?
Re: Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says
#26These are the same people projecting that Apple should have sold 80M iPhone X's...and then apple "fell short" of estimates when they sold 77M [1]. Why do people listen to these proxy advisory services like Glass Lewis [2]? Honestly, none of them have anything near a good track record or are worth anything [3]. They are effectively like tabloids for the financial markets. Honestly, I'd love to hear from someone on wal…
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Re: Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says
#27Isn't this setting up a bizarre incentive where every time each of the entities feels it isn't getting it's fair share of Elon's attention, that they have to bribe him with some massive stock grant?
Why not? Eventually they would end up paying him just a bit less than the value he provides, which is what you'd expect from any fair employment agreement. At some point it would be cheaper to let him go or let him not try very hard.
Re: Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says
#28Appears Glass Lewis & Co currently maintains approximately 37% of the market share for proxy advisory services - but does that mean that all of their clients vote as per Glass Lewis reports recommend? If so, given they collectively advise $20 trillion worth of assets, would someone please explain why this is not toxic to a free market. SOURCE: https://en.wikipedia.org/wiki/Glass_Lewis
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Re: Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says
#29Appears Glass Lewis & Co currently maintains approximately 37% of the market share for proxy advisory services - but does that mean that all of their clients vote as per Glass Lewis reports recommend? If so, given they collectively advise $20 trillion worth of assets, would someone please explain why this is not toxic to a free market. SOURCE: https://en.wikipedia.org/wiki/Glass_Lewis
> given they collectively advise $20 trillion worth of assets, would someone please explain why this is not toxic to a free market
They're recommendations. Reading board proposals and working out the consequences of CEO pay packages is (a) hard and (b) not particularly rewarding. Instead of every investment firm having someone doing hard and non-rewarding work, they outsource it to these proxy advisory firms.
Keep in mind who these advisory firms' customers are: the investors. It could be impolite for XYZ shareholder to publicly vote against Elon Musk. It is easier to call one's proxy advisory firm and let them know your thoughts. (It would also be more effective, from a political perspective, at achieving her goal.)
(Nitpick: they advise in respect of $20 trillion of assets. They don't make buy/sell decisions.)
Re: Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says
#30They should probably be spending that money on building cars. I doubt that "more money" would make much of a dent on what Elon's motivations really are.
> They should probably be spending that money on building cars
It's a performance-triggered stock award in lieu of cash salary.