Musk's Options Package 2.0

Tesla shareholders to vote again, this time in Texas

Today’s (very short) post is a quick update to my earlier (and much longer) post regarding the Delaware court’s decision earlier this year to void Elon Musk’s $55 billion options package.

Tesla announced this morning that it is asking shareholders once again to approve Elon Musk's controversial 2018 options grant, following an enhanced board approval process and with the benefit of more fulsome related disclosure. Tesla is also asking shareholders to approve the company's proposal to move the company's state of incorporation from Delaware to Texas and to eliminate the super-majority shareholder voting requirements for future such matters.  

I have not yet gotten all the way through the proxy statement, which makes for very interesting reading, but I think it is fair to say that if Tesla had demonstrated even a fraction of this much interest in board process and transparent disclosure the first time around, Elon's pay package would likely have been upheld by the Delaware court.  

You can find the Tesla proxy statement here:  https://ir.tesla.com/_flysystem/s3/sec/000110465924048040/tm2326076d13_pre14a-gen.pdf

And for those who wish to read (or re-read) my original post on this subject, here is the link: https://carltack.substack.com/publish/post/141318772?back=%2Fpublish%2Fposts%2Fdrafts