Tesla's $2.6B Musk Award Too Costly, Glass Lewis Says

Post by mulmen » Tue, Mar 06, 2018, 3:40 AM UTC

cagenut wrote: post #37

lend000 wrote: post #18

Earlier quoted context omitted.

> On the contrary, there is plenty of evidence on the diminishing marginal utility of wealth. For the average person, but who are you to decide? He clearly already spends his money productively by largely self-funding ambitious projects, and I suspect that he would be pursuing even more if he had infinite resources.

I'm a shareholder and I just voted against for basically this reason. I don't think the difference between owning 20 billion in equity and owning 25 billion in equity (or whatever) will mater to musk at all. he's fine. and he's going to try to finish what he started either way.

Post by IntronExon » Tue, Mar 06, 2018, 3:53 AM UTC

wirelessest wrote: post #40

cagenut wrote: post #37

Earlier quoted context omitted.

I'm a shareholder and I just voted against for basically this reason. I don't think the difference between owning 20 billion in equity and owning 25 billion in equity (or whatever) will mater to musk at all. he's fine. and he's going to try to finish what he started either way.

But the cost to his ego for not meeting a milestone which receives even more publicity because of the big price tag is a big motivator (or at least one could argue) So even if the utility of the funds isn't consequential, a package like this might be one if the few ways to further incentivize a CEO like Musk.

Post by psyc » Tue, Mar 06, 2018, 3:55 AM UTC

freddie_mercury wrote: post #16

feniv wrote: post #9

The 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?

Post by [deleted] » Tue, Mar 06, 2018, 4:06 AM UTC

feniv wrote: post #9

The 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…

Post by alakin » Tue, Mar 06, 2018, 4:19 AM UTC

frgtpsswrdlame wrote: post #33

zaroth wrote: post #15

Earlier quoted context omitted.

The subsidies are directly funding R&D of battery/EV/aerospace technology. But this way, the rich people buying the cars are also funding it, as well as the investors buying equity. The tax incentives are working precisely as they were designed, and for every dollar in subsidy there’s probably $9 more in outside investment coming onboard.

The subsidies are directly funding Musk's wallet as much or more than they are funding battery research.