Forget Musk's latest pay package, his last one could wipe out years of Tesla profits

[groundloop]

This discussion thread was locked as off-topic by Emile (a host of the Latest Breaking News forum).

Source: Reuters

Tesla's gaudy $1 trillion executive-compensation package for CEO Elon Musk has obscured a more pressing concern: Musk's 2018 pay package -- still tied up in court -- could eat up years' worth of the electric vehicle maker's future profits.

The Delaware Supreme Court will soon decide whether to reverse a lower-court ruling invalidating Musk's previous record-breaking compensation package. If Tesla’s appeal fails, it could trigger a $26 billion hit to profits over two years to account for the replacement stock-compensation package it has promised Musk – at today’s much higher stock price.

For comparison, $26 billion would equal more than half of Tesla’s total net income since becoming profitable in 2019. Even if Tesla prevails in court, its profits could be squeezed over the next decade if Musk hits performance goals in his trillion-dollar pay package, with each goal triggering billions in payouts and accounting expenses.

The outsized profit impact highlights the inherent risks of Musk’s super-sized compensation. Even the largest public companies typically have little concern about bottom-line impacts from CEO pay. The richest packages are typically measured in hundreds of millions – not billions.

Read more: reuters.com/sustainability/sustainable-finance-reporting/forget-musks-latest-pay-package-his-last-one-could-wipe-out-years-tesla-profits-2025-11-20/

---

Essentially Eloon's friendly board of directors has approved a massive transfer of wealth from shareholders to Eloon.

[Gore1FL]

1. There is a deeper sad-sick reality to this.

The shareholders have their wealth transferred to Musk include about everyone with a 401(k) or similar account with typical mutual fund offerings.

He's fucking everyone...Again.

[ret5hd]

2. so the "bust out" phase has begun...

musk is no longer interested in building tesla…it’s built, it’s all it ever will be…time to rake as many chips off the table as possible.

“…and fuck you if you complain that i scooped some of your chips into my lap, you worthless mouth-breathing scum!”

and on edit: expect the same scenario from these AI companies in a few years.

[angrychair]

3. I completely support him winning this lawsuit

I truly hope he wins.

This guy is draining HALF the profits they have made, in total, since 2019.
I hope it really pisses off the shareholders and buries the company in debt.

I hope Tesla chokes on its hubris.

[Bettie]

4. Something I've been wondering for years now

Couldn't most corporations be more effectively run by a group of mid-level managers (people who have actually worked for a living and understand the company and how it runs) and probably be more profitable than giving huge sums to some CEO who has never done any actual work in his life?

Are there some CEO's who came up through the business and know it inside and out? Probably....but not many anymore.

I think it's time for some of these guys to learn to throw themselves at the ground and miss.

[groundloop]

5. Also.... in the '60's CEOs made roughly 25 times the average worker vs. over 300 times now.

As CEOs have become more powerful their greed has increased exponentially.

[Bettie]

7. I can't imagine that they are even remotely

bringing enough value to the various companies to make their compensation anything but a drag on a company.

And workers get paid less and less every year.

[Bayard]

6. Nobody needs that much money

Especially when he enables corrupt politicians.

Go back to your own country, Eloon, and help all those poor suffering and persecuted rich white people.

[Lettuce Be]

8. He will obviously never meet the requirements to actually get this payday, but what if there's a different angle?

Perhaps he's able to secure more loans based on this fictional huge payout in the future? Who knows, but it sure seems sketchy. No way Tesla will ever be profitable enough to pay this. There must be another reason for the phony numbers.

[Emile]

9. After an alert and discussion with the hosts, locking.

This is analysis, not LBN.

Also your link does not work.

Feel free reposting this in General Discussion with a working link.