Professor Ann Lipton is right on the money as always. A shareholder has filed a complaint against Tesla, challenging the two controversial provisions to be voted on at next week’s annual meeting, the gargantuan proposed pay package and change of legal domicile from Delaware to Texas. Her entire post is well worth reading. Here is…
Tag: Elon Musk
Musk Offers Tours to Shareholders to Try to Get Approval for His Outrageous Pay Proposal
VEA Vice Chair Nell Minow is quoted in this story about Elon Musk offering tours to shareholders to get them to vote yes on his proposed pay package. We believe it is unlikely to persuade anyone of anything other than his inability to allocate his time to do the job his already-excessive compensation is paying…
Shareholders Urge NO Vote on $40B Tesla Pay for Musk
A group of Tesla shareholders is asking investors to vote against a compensation package worth more than $40 billion for CEO Elon Musk, saying that it’s not in the electric vehicle maker’s best interest. Tesla is struggling with falling global sales, slowing electric vehicle demand, an aging model lineup and a stock price that has…
Elon Musk Bullies One of the Foremost Authorities on Corporate Governance — and Director Duties of Care and Loyalty
Charles Elson is not only one of the most respected authorities on corporate governance, he is a corporate governance, he is a corporate governance hero. As a director of Scott Paper he fired the notorious “Chainsaw” Al Dunlap and denied his severance. Once again, he is taking a stand of courage and integrity. The fight…
The Tesla Board Still Doesn’t Understand the Job
The well-known definition of insanity is doing the same thing and expecting a different result. The should-be well-known definition of a board that fails to meet any concept of independent judgment or fiduciary obligation to shareholders is Tesla. Facing criticism that it is overly beholden to Elon Musk, Tesla’s board of directors said on Wednesday…
Nell Minow on Musk and Peltz
VEA Vice Chair Nell Minow was quoted in the Wall Street Journal in response to Elon Musk’s support of Nelson Peltz’s attacks on Disney, “He’s willing to be the gadfly, he would not want anybody to be the gadfly in his orbit,” said Nell Minow, vice chair of ValueEdge Advisors and a Tesla investor. “If…
Musk Sues As Shareholder Because…The Company Wants to Make Money?
Elon Musk has sued ChatGPT-maker OpenAI and its CEO Sam Altman, saying they abandoned the startup’s original mission to develop artificial intelligence for the benefit of humanity and not for profit. The lawsuit filed late on Thursday in San Francisco is a culmination to the billionaire’s long-simmering opposition to the startup he co-founded and has…
The Corporate Playing Field Tilts Away from Shareholders — Again
Peter Vanham in Fortune: Wherever you stand on the shareholder vs. stakeholder capitalism debate, there is one thing everyone can probably agree on: The idea that corporate America is built on shareholder primacy is largely a myth. The most powerful stakeholder in many U.S. listed companies is the CEO and chairman, followed by the board,…
Elon Musk’s “Unfathomable” $56 Billion Pay Package Thrown Out by Delaware Judge
A Delaware judge on Tuesday ruled that Elon Musk’s record-breaking $56 billion Tesla pay package could be tossed, calling the compensation granted by the EV maker’s board “an unfathomable sum” that was unfair to shareholders. Shares of Tesla dropped about 3% in extended trade.The ruling may sweep away the largest pay package in corporate America….
Senator Elizabeth Warren’s Letter to the Tesla Board Chair About Elon Musk
Senator Elizabeth Warren has written to Dr. Robyn Denholm, Tesla’s Board chair, to raise questions about conflicts of interest, use of Tesla resources for Twitter, and other concerns over Elon Musk’s Twitter acquisition. The full text is below. Highlights [footnotes omitted]: Mr. Musk’s acquisition created unavoidable conflicts of interest. For example, Twitter relies on advertising…
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