Lawyers - it's never about the money, it's about the principle...

[KyMUfan]

Lawyers who voided Elon Musk's pay as excessive want $6 billion fee

WILMINGTON, Delaware (Reuters) -The lawyers who voided Elon Musk's $56 billion compensation as excessive on Friday sought a record a $6 billion legal fee, payable in the electric car maker's stock. "We recognize that the requested fee is unprecedented in terms of absolute size," the three law...

www.yahoo.com

 

[HerdandHokies]

What a simple base rate of $288,000 an hour seems excessive?!

 

[KyMUfan]

Excessive for thee but not for meeee...

 

[Rock98Dog]

This is why lawyers are considered pieces of shit by most Americans. Musk’s compensation package was only worth $56 billion because, through his personal innovation, vision and leadership the price of the stock skyrocketed making everyone that bought it early rich. While all the other EV builders are dying or giving up he has cornered the market. The difference between Tesla and all those others is only one thing - Elon Musk is smarter than everyone else.

Tesla has a market cap of 645 billion. Anyone that thinks at least 9% of that isn’t directly attributable to Musk is an idiot.

 

[GeauxHerd]

The elephant in the room here also is that this should not even be in court because the government shouldn’t have a stake or say in peoples salary determinations. The guy who sued, shouldn’t have been allowed to sue in first place.

 

[herdfan06]

What a simple base rate of $288,000 an hour seems excessive?!

My wife is the wrong kind of lawyer.

 

[HerdandHokies]

The elephant in the room here also is that this should not even be in court because the government shouldn’t have a stake or say in peoples salary determinations. The guy who sued, shouldn’t have been allowed to sue in first place.

Keep your company private and you can pay yourself whatever you want. Go public and there are rules. A lot of people see “going public” as a free money machine but it’s not nearly that simple.

 

[KyMUfan]

Keep your company private and you can pay yourself whatever you want. Go public and there are rules. A lot of people see “going public” as a free money machine but it’s not nearly that simple.

It's not like he took an excessive salary from earnings or cash flow that caused shareholders to receive either no or reduced dividends.

So he took no salary and stock price growth was relatively flat until 2018 (the date of the agreement), the stock price explodes after that and he gets a benefit over 10 years from that growth. One judge in Delaware can decide he can't benefit from that growth in stock value?

The shareholder that sued also received the benefit of the higher share prices.

 

[GeauxHerd]

Keep your company private and you can pay yourself whatever you want. Go public and there are rules. A lot of people see “going public” as a free money machine but it’s not nearly that simple.

That’s why I’m saying get rid of those. If you disagree with how much someone is making then leave company.

 

[Rock98Dog]

No one forces anyone to invest in Tesla. If the guy that sued owned the stock when the pay package was approved (I would imagine he would have had to in order to have a claim) he has benefited greatly from the same stock appreciation Musk did.

My guess is the guy got mad about the pay package and sold out and is now greatly pissed he chickened out and missed the gains. Every $1,000 you invested before the pay package was approved is worth about $25,000 now. I’m not seeing where the investors were hurt. You could say that $25,000 would be $30,000, but I would argue that if Musk had reduced incentive and been less focused it never would have been $25,000.

 

[HerdandHokies]

My guess is the lawyers looked for a shareholder who would play ball and found one.

That’s why I’m saying get rid of those. If you disagree with how much someone is making then leave company.

Get rid of what?