Subject: Re: 13F : More Chevron
Some points of Jim's I didn't mention in my first reply.

From Jim:
Without such information she found the stockholder vote was not fully informed."
(emphasis mine)

The ruling wasn't "your pay was too high", more like "your board is a joke, so the process was too".

You are leaving out that her ruling was really "your board is a joke, so the board's decision has to be ruled 'entirely fair' but as I describe in this decision, it was not."

As to "your board is a joke," Tesla's great sin was that they used the term "independent directors" to refer to board members who were not otherwise employed by Tesla nor on its executive team nor working for or with Tesla in other capacity. You know, the kind of defition you would get if you googled "define independent board member". She decided that board members were not independent because they made a lot of money from the Tesla stock they owned, because NOBODY WANTS A BOARD THAT OWNS STOCK in the company. Sorry that was sarcasm by the way.

But as egregious as her holding Tesla to a different definition of independent board member than the rest of the English speaking world uses, she needs to compound the error by Falconing Up her analysis of "entirely fair". Fear not! She is up to that task.

That the agreement is not entirely fair is proved mainly by the "fact" that the board did not need to pay Musk ANYTHING to keep him working at Tesla. With 20% stock ownership, he had enough skin in the game to work for free. Now I do hope that it suffices to just say out loud, that is the stupidest wrongest thing I have ever seen in a judicial business decision. If Musk has a choice of getting 20% of any increases in TSLA market cap by, say, sleeping in conference rooms while he works 100 hours a week trying to get the 3, and then the Y assembly lines up to a few 1000 cars per week, or he can earn 20% of any increases in TSLA market cap by, say, putting his efforts into SpaceX, Neuralink, or even OpenAI or perhaps his own AI company, how stupid do you have to be to guess that paying him nothing IS NOT GOING TO WORK??? Well apparently, exactly as stupid as you have to be to be a sitting Judge on the Delaware Chancery court.

Jim muses:
Oddly enough, my beef with the deal is rarely mentioned. Assume for a moment that the pay deal was OK for compensation of the boss of a big company.
But Mr Musk only has a part time job there!

Surely you are joking, but I don't trust the rest of your audience to realize that.

Musk pretty famously slept in the Tesla factory and reported working 120 hour weeks when ramping up the production of the Model 3 and Model Y to a few thousand per week. The Model 3, or is it the Model Y, now outsells the Toyota Camry in the United States. THIS is why the market cap of Tesla grew by 10X since 2018.

Surely you don't imagine anybody whos pay agreement pays them NOTHING if they only double the size of the company they are managing is working by the hour? I get paid by the hour because my contribution to my company's stock price is immeasurably small. Musk is playing a different game than that, and playing it better than anybody else in the world over the last 10 years or so.

Steve Jobs by the way, worked only part time at Apple when he was CEO. Or was he only part time at Pixar? I forget.

R:)