By Berl Falbaum
There are times when words and simple logic fail to grasp an event, one that you simply can’t get your head around. It is just too weird and inexplicable.
That came to mind when the shareholders of Tesla voted to approve a pay package worth $46 billion for its CEO Elon Musk. (Hold your e-mails, “billion” is not a typo.)
When the proposal first made the news, I ignored it. A $46 billion payout? Can’t be true. Ridiculous. Asinine. Why waste my time?
But it was true. The shareholders did not find it ridiculous or absurd. The package was approved by 72 percent of voting shareholders.
Delaware Court of Chancery Judge Kathaleen McCormick, earlier this year, blocked the pay package, stating the Tesla board “bore the burden of proving that the compensation plan was fair, and they failed to meet their burden.”
Talk about understatement. At this writing, the Tesla board reportedly was working to overturn McCormick’s decision.
The shareholders argued they voted for the package so Musk would not quit.
Was there another competitor out there who was willing to pay Musk even more? And is he really irreplaceable?
Tesla Chairwoman Robyn Denholm, writing in a shareholder letter, said, “If Tesla is to retain Elon’s attention and motivate him to continue to devote his time, energy, ambition and vision to deliver comparable results in the future, we must stand by our deal.”
One investor described the vote as a “pop-the-champagne moment.” We can assume Musk was buying.
So, how does one react or explain a $46 billion compensation package?
Obscene? Yes, but that falls short. Ludicrous? Of course, but not even close? Unseemly? Obviously, but that hardly does it.
I can go on like that for a while, but I think you get the point.
Musk had a multi-billion smile on his face after the shareholder votes were counted.
“Hot damn, I love you guys,” Musk said at the shareholders meeting. “It’s incredible. I think we’re not just opening a new chapter for Tesla, we’re starting a new book.”
Hot damn, indeed. A very expensive new book.
I hate to pour cold water on such a celebratory occasion, but we might point out that Tesla’s stock has dropped 26.5 percent so far this year. I am getting chills just thinking about his potential pay had the stock performed well.
Back to the pay package. The two words that do come to mind are “enough” and “why.”
First, let’s deal with when is enough enough. Musk is already the richest man in the world, worth an estimated $200 billion.
You would think that is enough. He probably can buy some entire countries and still have “a little left over” for his entertainment budget like going to the show or to a fancy, expensive restaurant.
One might think he hit the “enough” measurement at about $199 billion ago — at around $1 billion. What possibly can you do, or want to do, after you reach that level?
My personal enough goal is — never mind.
Which brings us to “why.” Why would anyone want that much money? What is the goal, the objective, aside from some bragging rights?
Even if he went on a spending spree, he could not spend it all. Not possible. He would always have some money left over for a rainy day.
I would love to interview Musk on “why” with the help from a psychiatrist who can guide me in the proper questions I should pose to get to the bottom of his psyche.
(I would love to interview the Tesla shareholders as well.)
Think of $46 billion in the following context: In December 2023, the United Nations proposed a 2024 budget of $46 billion — equal to Musk’s pay package — to assist more than 180 million starving and impoverished people in 72 countries.
Thus, I have an idea: Musk could fund the UN project and then live off the interest from his $200 billion portfolio. He can pay for his needs from interest which at 5 percent — given his financial skills and connections he probably can do much better — would earn him about a mere $10 billion — give or take a billion.
Sure, that would require some sacrifice. He may have to make some adjustments in his life style like reducing maid service and mowing his own grass.
But he could feed 180 million starving, poverty-stricken people around the world who would thank the Tesla shareholders for their proxy votes in support of this historic passage.
If Tesla offers its employees annual raises, I wonder how much Musk will ask for next year.
————————
Berl Falbaum is a veteran journalist and author of 12 books.
There are times when words and simple logic fail to grasp an event, one that you simply can’t get your head around. It is just too weird and inexplicable.
That came to mind when the shareholders of Tesla voted to approve a pay package worth $46 billion for its CEO Elon Musk. (Hold your e-mails, “billion” is not a typo.)
When the proposal first made the news, I ignored it. A $46 billion payout? Can’t be true. Ridiculous. Asinine. Why waste my time?
But it was true. The shareholders did not find it ridiculous or absurd. The package was approved by 72 percent of voting shareholders.
Delaware Court of Chancery Judge Kathaleen McCormick, earlier this year, blocked the pay package, stating the Tesla board “bore the burden of proving that the compensation plan was fair, and they failed to meet their burden.”
Talk about understatement. At this writing, the Tesla board reportedly was working to overturn McCormick’s decision.
The shareholders argued they voted for the package so Musk would not quit.
Was there another competitor out there who was willing to pay Musk even more? And is he really irreplaceable?
Tesla Chairwoman Robyn Denholm, writing in a shareholder letter, said, “If Tesla is to retain Elon’s attention and motivate him to continue to devote his time, energy, ambition and vision to deliver comparable results in the future, we must stand by our deal.”
One investor described the vote as a “pop-the-champagne moment.” We can assume Musk was buying.
So, how does one react or explain a $46 billion compensation package?
Obscene? Yes, but that falls short. Ludicrous? Of course, but not even close? Unseemly? Obviously, but that hardly does it.
I can go on like that for a while, but I think you get the point.
Musk had a multi-billion smile on his face after the shareholder votes were counted.
“Hot damn, I love you guys,” Musk said at the shareholders meeting. “It’s incredible. I think we’re not just opening a new chapter for Tesla, we’re starting a new book.”
Hot damn, indeed. A very expensive new book.
I hate to pour cold water on such a celebratory occasion, but we might point out that Tesla’s stock has dropped 26.5 percent so far this year. I am getting chills just thinking about his potential pay had the stock performed well.
Back to the pay package. The two words that do come to mind are “enough” and “why.”
First, let’s deal with when is enough enough. Musk is already the richest man in the world, worth an estimated $200 billion.
You would think that is enough. He probably can buy some entire countries and still have “a little left over” for his entertainment budget like going to the show or to a fancy, expensive restaurant.
One might think he hit the “enough” measurement at about $199 billion ago — at around $1 billion. What possibly can you do, or want to do, after you reach that level?
My personal enough goal is — never mind.
Which brings us to “why.” Why would anyone want that much money? What is the goal, the objective, aside from some bragging rights?
Even if he went on a spending spree, he could not spend it all. Not possible. He would always have some money left over for a rainy day.
I would love to interview Musk on “why” with the help from a psychiatrist who can guide me in the proper questions I should pose to get to the bottom of his psyche.
(I would love to interview the Tesla shareholders as well.)
Think of $46 billion in the following context: In December 2023, the United Nations proposed a 2024 budget of $46 billion — equal to Musk’s pay package — to assist more than 180 million starving and impoverished people in 72 countries.
Thus, I have an idea: Musk could fund the UN project and then live off the interest from his $200 billion portfolio. He can pay for his needs from interest which at 5 percent — given his financial skills and connections he probably can do much better — would earn him about a mere $10 billion — give or take a billion.
Sure, that would require some sacrifice. He may have to make some adjustments in his life style like reducing maid service and mowing his own grass.
But he could feed 180 million starving, poverty-stricken people around the world who would thank the Tesla shareholders for their proxy votes in support of this historic passage.
If Tesla offers its employees annual raises, I wonder how much Musk will ask for next year.
————————
Berl Falbaum is a veteran journalist and author of 12 books.
