Elon Musk's $56BN Tesla Pay Package: How Much is Too Much? | Vantage with Palki Sharma
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- Опубликовано: 30 янв 2024
- Elon Musk's $56BN Tesla Pay Package: How Much is Too Much? | Vantage with Palki Sharma
Elon Musk's $56 Billion pay package at Tesla has been voided by Court. It was the largest corporate pay deal ever. Judge tossed out Musk's pay package calling it "an unfathomable sum". This ruling is being seen as a warning to companies that award CEOs exorbitant sums. Now, sky-high CEO pay is no secret. But it keeps rising further into the stratosphere. Why do CEOs get paid so much? Is it justifies? Is the pay gap between CEOs and workers fair? Palki Sharma tells you.
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Elon Musk | Richest Person | Pay Package | Void | Delaware Court | Firstpost | World News | Vantage | Palki Sharma
#elonmusk #paypackage #tesla #delawarecourt #firstpost #vantageonfirstpost #palkisharma #worldnews
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Elon musk's fan boys in the comments angry coz she said Elon wasn't the founder, now they are trying to use any arguments to call him a founder 😂😂
Musk wasnt the founder of Tesla, he was the was erliest investor if Tesla. But who cares... I know one person that cares Musk LMAO and the cultist fan boys. LMAO Ill just continue shorting the stock every time Musk opens his mouth. Made me rich b....
Elon Musk is true founder... Those before him was just a guy with prototype with no intention of becoming what Tesla is now.
@@maxmaxie1328Musk is only the CEO because he bought most shares. The employees are creating everything else, including the designs.
@@omi685 which employee? dont talk like bloody communist.
@@maxmaxie1328 Are you Musk's cult member? Musk bought Tesla, same as he did with all his businesses, off the people who came up with the ideas. He has thousands of employees creating everything for him.
He's only CEO because he bought that position from the inventors.
I live 20 miles from the Tesla plant in the Bay Area and have dozens of friends who work at Tesla.
The stock options given to those workers made them million while working on an essembly line.
not every company has stock options given to employees
only the ones joining in the early days. the Tesla workers who came after the Twitter buy lost half their wealth.
@higherbeingX his point is not about other companies. Assembly workers making millions through stock options is great.
@@striker44 What are you talking about? Only the workers who joined Tesla in the early years made millions. The others not so much. And the workers who joined before musk bought Twitter lost half their wealth and are the lowest paid workers in America, because they mainly got paid though stock. Reality is a bitch mate. The Tesla story has changed. The reason for that is that the Tesla CEO is not even working at his company anymore. Since Musk left Tesla and didnt bother working in his job the stock went downhill. You need a 100% dedicated CEO to keep a multi billion company successful. 90% Twitter 8% spacex and 2% Tesla wont cut it. And 2023 Tesla was the worst preforming company of the magnificant7. It sadly shows.
El un asked for a certain percentage, every one agreed cause no one thought it was possible and he pulled it off, now they are crying. The man is the hardest working man so far in this planet
As a shareholder if the company, we agreed upon these. More than 80% of the shareholders also voted on the pay package. The $56b is not in cash but in a form of equity option.
The shares come from stock dilution out of the pocket of Tesla stock investors. You are paying for it buddy. Elon needs your money and you love giving to him. As if Musk doesnt have enough already.
@@Ravenought69 a 10% dilution is a given. The target was also achieved half the time it was expected.
@@LMNSeason and in 2023 the target wanst achieved and Musk still want to be gifted 5% of Tesla shares on top of his already outrageous compensation. That's Karma mate.
@Ravenought69 from 200k deliveries with massive debt to 1.8m deliveries with nearly $30b in cash, almost zero debt, market cap is above 10x this year. Everyone who has been a shareholder in 2018 and before it has been greatly rewarded. The completion of this pay package was meant to renew a contract with Elon and progress to another growth. Regardless, the shareholder and the board will figure out a way for Elon to get what was agreed upon in 2018.
@@LMNSeason Since the shareholders are the owners of Tesla and not Musk, the shareholders the owners of the company should get paid than. Musk has already been paid handsomely for being CEO. The best paid CEO in human history. Now the owners need to et paid and that is the shareholders. That is the law of being a public company. Its called the fiduciary duty of the company. Musk doesnt need the money. Musk doesnt care about you or me. He sold of half his shares to buy Twitter destrying the Tesla stock and half of the wealth of the shareholders. Its time musk pays the owners back a little instead of wanting to be gifted tens of Billions on top of what he already got. Payed out of our pocket! Thats Ridiculous. Musk can use his own money of he wants more Tesla shares. He can sell of some shares of spacex to fund it. Spacex is a private company Musk owns it 100% no matter ho many shares he has there. You want my money musk, every board of a public company, that is not corrupt would say #GFYmusk. Enough is enough.
And then they Layoffs employees saying Cost cutting, highly paid
Imagine 😮
At least the government isn’t spending billions bailing him out. Unlike ford and GM and their high priced execs..
Or the banks.
They bailed out SpaceX tho for billions when they had 0 viable products. And the billions in forced government mandated carbon payments, subsidies and customer tax incentives didn't hurt. Heck, Texas gave 5oo million, Germany a billion in tax incentives. I hear we're you are coming from but the largesse is everywhere in our " non socialist" economy. Elon is well over 10 billion in free money at this point.
Elon has received well over 10 billion in government money over the years.
@@reginald7214 yep. And he earned it.. not to bail him out due to sloppy business
@@Dogatemyhomework927 the SpaceX bail out from nasa was a straight bail out. They had done zero successful launches and were out of money until the piggy bank got opened. Having a personality type of "Elon fanboy" has made you a fool....the 400 million dollar loan to Tesla was from the government, no normal person would have given them that lifeline. Not anybody. Both fail without those handouts.
🤔 American rich forget about being a human.
This is great Palki. You're fast becoming my "go to News source". Thank you keep up the good work.
please also raise the issue about salary given to indian workers. as a example i have worked for 8000rupees (year 2019) per month.
It was NOT a pay package. It was an option package that he has to pay for at the value at the time it was signed.
Yes at about 22 dollars a share... Practically a gifting. The shares come from stock dilution out of the pocket of Tesla stock investors. You are paying for it buddy. Elon needs your money and you love giving to him. As if Musk doesnt have enough already.
@@Ravenought69 you like counting other people’s money that they work for ?
@@jonbelushi4061 Oh there seems to be a misunderstanding in your assessment. Let me clear it up. Tesla is not owned by Elon Musk but the shareholders who invested in the company. The deal was Elon to make Tesla a public company in trade for our money so that he was able to build the company on our behalf. Musk is our employee. We the shareholders are the owners of Tesla. Musk sold ownership of Tesla to us the shareholders. That is why Teslas supreme fiduciary duty is to us and not to himself. Musk has now right to ask for anything. He works for us not for himself or anyone else. Musk already is the highest paid CEO in history, if that is not enough money than what is? Him asking for more is ridicules. A normal board that wasn't conflicted and bribed like the Tesla boars is. Family and friends payed so much that they had to give back 700million. The highest payed board of a company in human history. A normal board of any other company would say and righteous so #GFYMusk. And thats exactly what musk needs to hear every day. Because his head is blown, the guy is a ticking time bomb at this point.
@@Ravenought69The deal was given when the company was valued at 60 billion. The condition was that if Elon under his leadership can bring the company to 600 billion in next few years, he will get 56 billion dollars. He accepted the challenge and in few years he made the company 10X. And paid for the same.
@@dineshmanoharan2423EXACTLY! People don't understand that.
How about this news fact: Elon Musk and the Tesla board reached an agreement on his compensation from the inception of the company when its value was 60 billion dollars. The promissory note outlined that if Elon successfully grew the company to 600 billion dollars, he would receive a percentage as compensation. Presently, Elon has the potential to sue his own company for more than 60 billion dollars and emerge victorious.
Is this Different Countries Currency Moneies? 💲💵
Great journalism.
Elon is a visionary like Jobs. So he deserves every Billion.
Only Jobs created original tech. Elon plagiarizes it.
Dude has convinced himself that he's going to save humanity by populating the moon. Not only is that not original, it's conceited BS. He's a narcissist that's been lucky in life. That's it.
@@demons27 if you say so then Jobs took from Xerox.
OH YEAH!, HE MAKES IT HAPPEN HE DESERVE IT AS WELL.
His Company, his strategy, his risk and hence it's his money!
Tesla is Elon Musk. Without Elon musk it wouldn’t have been this popular. The shareholders are digging their own grave.
BS
And these assholes say that they are facing recession and we can't afford workers,we need a cost cut
I don't think so it's unfair because
Cause in most cases Ceo's are either founders or early investors so saying that :
Ceo's money should be equavalent to worker is just ridiculous.
Everybody knows we live in an Unfair World they just don't accept it.
Either make you're self worth a big chunk by struggling or don't talk heck about it.
If workers want equal pay then why do they leave when the company goes bankrupt or anything bad happens.
Truth: Everybody cares about themselves not about others unless cited profit.
I agree money should be higher for workers with inflation .
But my best answer is : You will make the money for the risk and work hard you done.
The company hasn't even made that much profit in all its years of existence. Why should they fork out such money to a CEO?
Ground reality....
Tesla is where it is now because of his leadership and vision. I don't think anyone can dispute this fact.
He is also one of the founders and has put all his money on the line for his companies. So yes, I do believe he can get paid whatever amount his company can shell out.
He was not a founder. He sued to be called a founder after he bought a stake.
@@reginald7214 He won the lawsuit. Yes he was not at the very beginning but he got into it before it was anything.
The average Tesla employee lasts 3 months at Tesla. No one wants to go there
@@anirudhhhh don't be another Tesla d bag. You were wrong
While I agree that CEO/executive compensations are unethically high even if we ignore the contrast average worker pay, but the court decision barely even manages to get close to a warning forget about any ethical laws/law implementation becoming reality.
From what I can see - matter will prolong for the news content and to give illusion that courts really do/can think about fair pay structure in favor of justice.
Disagree that executives alone are the key to a company’s success. Their vision/decisions can be compared to a dream that is turned into reality by countless workers and their efforts - efforts not just of physical labor but also of the mind in giving the dream the right shape and form. Conveniently that fact has been ignored like a steep fall line on a graph when we put numbers/salaries data. Example in Norway executive to worker pay ratio is 11 times whereas in US it’s 350 times or worse.
Why again are we saying executives take the risk. They take decisions good or bad; but most of the risk is burdened on employees should the company fail - they get laid off in volume and for the years they serve as successful company- they get close to nothing of the profit share. Data should prove the statement, pretty sure on that.
When someone is being payed that much is because he is doing everything and others are just robots. No good idea or design comes from employees, that is the message.
true
You do know that Elon Musk bought Tesla from someone else, right? Other people were behind that company, he has an army of employees making stuff for him, including the designs...
@@omi685 yes I do and you get the message, sometimes to make a point you need jokes or ridicule.
The deal was given when the company was valued at 60 billion. The condition was that if Elon under his leadership can bring the company to 600 billion in next few years, he will get 56 billion dollars. He accepted the challenge and in few years he made the company 10X. And paid for the same.
Infosys Salil Parekh grabs a huge pay package but pays much more less to his engineers that they deserve.
Please do not take average salary of workers into account, please take Median salaries, those are the true benchmark of how actually workers a getting paid, average is a bad calculation.
12000$ is more than 10 lacs.. Is this the average worker salary..
80000 a month🤔
Even if half of what is paid to top 10 people is distributed to lower level employees...their all frustration of low pay would be reaolved...
And this won't even dent the luxurious life of top members because they extract too much of the salary from the profits.
Teslas profit margins would be HUGEEEEE for this pay !!!!
The video said the court said no.
Will the sales still go up?
Man, Elon's fans are pissed in the comments. It is absurd to pay someone 56B USD per year, no matter how valuable he is to the company
The MuskStans are out in force today.
One person should never get that much in compensation for a job. It makes me wonder what the members of the board were getting out of it?
They made a deal, set sky high parameters, took no pay on that project despite investing his time and skill for 5 years and he knocked it out of the park. He's owed the money, plain and simple. People are just sour because its a massive number and He's already hugely successful. What if this was a simple family that was promised ownership of their dream business if they kept it running for 5 years but they couldnt pull a salary and then at the end they were told "nah, its just too much to give you". Its the same, the scale is different.
Me what is burning in my mind is ..what manner of capacity does elon musk have , what depth of knowledge ....like to make u raise your value to be paid such amount of money !!
Correction Elon is not taking any salary / year. Elon is awarded options (by board and 73% shareholders approved) in 2018 to make company 10 times (approximately) in 5 years to realize the options. Elon hit that target. NO ONE thought about that will happen at that time (2018). Surprisingly Investor with 9 shares (value of 1700$ today) filed case against Elon on his options allotment in 2022, after he hit the target. Judge is the same judge who forced Elon to buy When Elond findout the twitter lies. This judge is democratic Judge in President Bidens State and Elon is against Biden. Do you know how much Lawyer going to get? atleast 2 billions+ that Tesla need to pay him. Most of the media is against Tesla, because Tesla never advertise.
Please! Here's the truth about the Twitter deal: Elon had a "poison pill" clause in his deal that he had to buy Twitter or else if he refused, he had to pay a penalty. "Poison Pill" clauses are common in business deals like that with deals of value. Elon was stuck with that deal and cried "bots" to get out of it. It didn't work. The Twitter board took Elon to Business Court to enforce the deal or to "take the pill". When the trial was about to end (it wasn't good for Elon during the trial), Elon begrudgingly bought Twitter. Oh and Elon's "polls" on Twitter? Rolling Stone reports that Elon has his own set of bots to control "the polls"
You Elon boys need to touch grass, BIG TIME!
All true
Dunno if it is a bigger blow to Musk or Musk fanboys 😂
Both!
We live in an unfair world where a few people's work is highly overrated & the rest of the people's work is highly underrated irrespective of their education, qualifications, amount of hard work or smart work, talent, intelligence, age, gender, behavior, etc. The irony is humans made this world more unfair than it already is.
I think Tesla is there bcz of musk so he deserves it
I so much love the way she explains her News, very simple and clear even to layman.❤❤❤
Elon do not work the engineers in Tesla does the work do the get get a good salary?
Who r u to tell what's the CEO salary
Nice presentation👍
It's the same in film industry too
The risk should allso be considered in this disparity ratio.
CEO's are at higher risk than any other individual in the firm. As we can see in case of tesla 3% drop .
And packages are not like u are getting every penny mentioned ,it involves shares and many other stuff
THIS REPORT COMPLETELY MISREPRESENTS THE ENTIRE CASE....AND WHAT ELEMENTS CONSTITUTE "PAY".
He received NO PAYCHECK...ZERO. HE WAS ABLE TO GAIN A GREATER PORTION OF H I S COMPANY BACK....something he had to give up to grow it. But, he also cannot dump it.
The judge in the case is a moron who clearly doesn't understand the contract which was agreed to by the vast majority of stockholders.
Question: WHY IN THE HECK would Tesla stock drop 3% after it was announced that the company would be saving 56 Billion!?!? Stocks surge when companies announce lay offs, so what is responsible for the drop if it means more money to shareholders? This makes zero sense.
very true
He proved and he deserves it!!
Chief Judge McCormick took $56 billion away from Musk! Simple as that! Wonder what the Plaintiff’s law firm award will be since Delaware law, they can get 1/3 of the award or up to $19 billion for 5 day hearing.😂
Good work
At least the company belong to him. Why are you guys worried about him? Is parking Sharma getting the same pay as other employees? So why is she raising eyebrows on others' pay?
What about other CEOs'?
Many times I agree with her point of view but, on this one I will ask to anyone who agrees with her today. Should this “overpayment” be on your name, would you still say it’s too much? … Exactly!!!
It is between the CEO and the board. Who is the aggrieved party here? I'm pretty sure its not a 'salary' but Options that were offered as comp and he makes money when they go up and $56B is the current value.
tesla is the result of Eldon's genius and drive. everything they have achieved is directly due to Eldon's direction. If 55 billion keeps him happy and productive, so be it
It is totally unfair, thank you for sharing
Elon Musk is reaping the reward of his hard & smart work over the years. If anyone is in pain I think that person should work their ass out to decide for their company.
Tesla won't be the Tesla we know today without Musk & today the poor man is reaping the fruit of his labor and someone is getting bittered.
When was the stockholder that sued MUSK when he almost went bankrupt with Tesla? The $56 billion sounds too much for a yearly salary and don't forget that a good CEO is priceless.
ELON MUSK Brain is worth more than $1,000,000,000,000.
Of all the C.E.O's i know, ELON deserve a $100 Billion more, guy really is out there with the rest of his workers, besides, he is the leader of the TECH industry across the board,
@elonmuskceo-tesla Im from South Africa, i am a big fan of the way you do things. Wish to meet you someday. Keep doing what you are doing, God knows, without you, the world will be very dark within a few years.
He is not just a CEO but a founder of Tesla Group of Companies. Just like Bill Gates is to Microsoft, Elon is to Tesla. He deserves it being the founder & visionary leader.
He is not founder.The founder of Telsa was someone else and Musk bought the company.
Wrong! He is not a founder of Tesla. He joined it later.
Those lefty people are so envoy! He took all the risks, and if it was bankrupt, he would be the one guylted
Agreed.
@@Joshiu1202 hes the reason Tesla is where it is. it was his investment in 2004. only a year after it was created. so yes, he is the founder. he was the latest investor in the company. so I dont understand why this clown, who filed a suit against his salary, thought that musk's pay is any of his concern.
And you and all shareholders agreed to hte laws and the judge ruling against Musk. Boohoo Live with it.
He is also the founder not just CEO. 🤡
Elon is not founder of Tesla 😂
@@theabhishekmondal he actually kinda is. Tesla was founded in 2003, he joined in 2004. he was there since the inception of the damn thing
even a sweeper is since the inception still that's totally different from being founder, indians needs to talk fact and let go of their people worshipping culture they will literally say anything to suit the person they like@@kabirsardana1282
@@kabirsardana1282no he isn't a founder. He bought a stake then sued in order to be called a founder.
@@reginald7214 right ✅
Did the CEO of Firstpost like this news report ?
Why did we even abolish monarchy 😂
He deserves every cent....
Without Elon, Tesla would not be where it is now
Why would anyone ever innovate in a world like this??
Its the musk..can be paid anything is not more..... Bcos nobody or no bloody could have tech advancement ideas like he does ....❤❤
Musk was paid more than the next 200 highest paid CEOs combined in history of this world. Now Musk is the third richest man alive after he lost the 56billion. Poor Musk cant work at his company because he is soooo poooor. LMAO
What idea was that, the irresponsibly released Murder Pilot?
The Hyperloop was an idea from 100 years ago. Elon Musk is the Vanilla Ice of tech
BS
Already trail case failing open to theres
At-last shrugged coming true. 😂
Then they LAY OFF poor workers because they dont hve money to pay those WHO R ON VERGE OF STARVATION and HOMELESS
Wait! Bernard Arnault has just surpassed Elon Musk as the richest person in the world.
Hey like I own my own company and I don’t know what to say 😂😂🙌
Like to understand the pay I think most should start their own company and see how much it takes to really grow and get to some levels 🙌
I die when palki sd this big cats to CEO's😂😂😂😂
Does it mean that Tesla sales generate a trillion dollars a year to justify paying the CEO $56 billion?
4:50 In India data is wrong, avg worker earns $2500 to $4500
Worse part is that these ceo dont pay income taxes they just borrow from banks and collateral their share stock option so they dont have to pay taxes.
Those are the dance of success
Those are the dance of someone with no rhythm 😂
In the old days CEO did not get more than 20x lowest salary. Its crazy to pay someone who doesn't lose his/her shirt if the company fails. All directors should have skin in the game
That's why it's called limited liability
Pretty sure if all his businesses failed, he would lose too. Just because he has many successful businesses doesn't mean he should not be compensated just because "its too much". There has to be incentive to be successful because if there isn't, why would people try?
Imagine if Steve jobs was alive and productive till date
Paid in equity which may end up with zero value if equity tanked.
Private company can do anything they want. I'd like the government to stay out of it.
Why court is interfering in this.
It's Business Court. A special court in the U.S. that handles business law
His pay can be reduced down to $55B. Another law-suit ? OK $50B / year. How long can courts help ?
4:51 Which average worker in India earns 12K dollars? Are you out of your mind!!
He deserves every penny
People who know nothing about tesla want to tell you how to get paid 😮
CEO life span is much shorter, and their fate is tied to the company. If they don't show the results their ceo life is over. So it justifies the higher pay but must's pay is too much to digest.
Elon Made Tesla what it is .Tesla is the most successful eletric car company in the world . Payment should b proportional to the success of the company especially founders like Elon . The companies that invested in Tesla made billions as the first person to invest in Tesla he deserves those billions.
Tesla isn't the most successful electric car company. It's the most obfuscated carbon credits mule scam in the country.
So you want the pay to be same huh ? Sure a million for everyone, i am up for it😂😂!
Not the founder, a somewhat clever investor who started with illicit emerald mine money. Fan boys can deal with the facts or they can continue to live in never never land.
Funny that the guy with 9 Tesla shares took Elon to court. The package was agreed upon by share holders; $56B is his pay out, fair and square.
What? Package put together by a board where every one is either a blood relative, college buddy, major investor in Elon companies or just yes men . Only one board member did not appear to have any conflict of interest. That is why they shut this down. That is what the judge ruled anyway.
Every news organization said it was overpaid.
Rich r getting rich,,at what cost..The Nature..destroying nature ..one day Nature will give us back😊
So, it's okay to price gouge anyone but the Shareholders, right?! The almighty shareholders!!!
It depends how much the company has made.
CEO are extremely overrated
Musk Deserves 100b $ Sal.
This man is single handedly responsible for shifting the world from petrol cars to electric cars, Also he's not just the CEO but also the founder. He's not stealing this money from anyone and is only being compensated because he must some very unrealistic targets that were set for him in his contract. So yeah, let him get paid what he's worth.
Congrats on getting every sentence in a paragraph wrong!
He's not a founder tho. He bought in later and sued to be referred to as a founder. Also, this is not how public companies operate. Take you fanboy hysterics to a pump channel.
Obama saved Tesla, all this money is from US citizens tbh
Tesla was founded by Martin eberhard and Marc tarpenning. I'm shocked Tesla fanboys don't know this.
@@D402S @reginald7214 You two should get a kick out of this one. Elon said publicly in court that he created all he Tesla tech
My small brain and even smaller pocket can't even fathom this news report
Well the world is really not equal
They don't do #hit.
Can you imagine if Elon resign from being CEO from Tesla?
I'd think those $56b would mean far less if not close to nothing
and we call ourselves a socialistic country and all our political parties claim to be leftists.
Thai isn’t in cash though it’s in stock.