Musk's Performance Based Compensation Plan Invalidated by Delaware Court

I'd be Livid

Back in 2018, Tesla and its shareholders (they voted in the affirmative) awarded Elon Musk an absolutely insane compensation plan worth up to $55 billion in stock.

However, it came in 12 trances, each granted after Tesla reached an important performance based milestone.

I remember the news around the time this deal was reached. And people laughed at it. The goals set even for the early tranches were considered absolutely impossible to meet. They mostly focused around getting the model 3 out the door, increasing sales, revenue, profitability, and stock price.

But we all know how much of a workaholic Elon Musk is, frequently sleeping in his office at Tesla. And while I can’t find the exact figures of where he is on the 12, I believe he has hit every metric so far.

And the shareholders of Tesla have benefit tremendously. Tesla is bigger than ever, it’s stock has soared since 2018, their cars are selling like crazy, and the model Y is the world’s best selling automobile.

After achieving all of that, a court in Delaware is going to take back all the money Elon Musk made.

Can you imagine after working you ass off like a maniac for years to meet metrics agreed upon by you, the board, and voted on by shareholders to have a court say you must pay it back?

The work’s been done! Everyone already benefit! The shareholders all made their money (and will continue making it).

If I were Elon Musk…livid doesn’t even describe the level of anger I’d have right now. I hope no one is incurring his wrath at this moment.

The insanity of a court to interfere with compensation fully agreed upon by all parties is beyond asinine. This makes my blood boil.