Two new proposals for Tesla shareholders are a referendum on Elon exceptionalism.
Share on email that would be unthinkable at almost any other public company: Moving the corporate headquarters out of Delaware, and giving the CEO billions in pay that's already been stripped from him by a Delaware judge.exceptionalism. He seems to be confident he's going to win them both, on the grounds that keeping Elon happy — at almost any price — is ultimately in shareholders' best interests.
They would also move Tesla out of the Delaware jurisdiction, the one place that has shown it has the ability and willingness to rein in Musk's excesses.In 2018, when shareholders first approved Musk's massive pay package, very few of them expected they would actually have to pay out on it. It was attached to extreme performance goals that were considered highly improbable.of the package, then, was closer to zero than it was to $56 billion.
Even the market-cap targets are no longer met: While Tesla did exceed a $650 billion valuation in the past, it's not there any more.
Institutional investors who benchmark the S&P 500 were largely forced to buy Tesla stock when the company joined the index on Dec. 21, 2020.In other words, a very large part of Tesla's institutional investor base, far from being grateful for Musk's wealth creation, is sitting on substantial capital losses. The stock trades some 63% below its all-time high.In a rational world, Tesla would lose this vote. Which probably means Musk is going to win it handily.
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