Elon Musk’s pay package has been rescinded by a Delaware court.
And the case read horrible. It was 201 pages, most of them chronicling errors in the process of approving his $55.8 Billion pay package.
And it’s a reminder for all of us. When we do things we need to do them right.
There’s not doubt the Delaware judge didn’t like what she saw.
And a lot of the case focused on hiding information and conflicts of interests.
But the less for us is two fold: (1) be careful in how you document things, and (2) the way things look matters.
The case mentions that Elon Musk used his former divorce lawyer as corporate counsel to document some of the transactions. That, in itself, raises a lot of questions.
And now Musk is talking about moving Tesla’s state of incorporation to Texas - which I am not sure would have changed the outcome anyway.
Since this blog’s focus is on business and not law we’ll stop at the business lessons here. But I did do a write-up on my law blog, including a YouTube video, which you can find here:
Feel free to comment with your thoughts and I’ll see you soon.
Shawn
R. Shawn McBride
300 N. Ronald Reagan Blvd., Suite 210
Longwood, Florida 32720
(by appointment only)
Get in touch: https://linktr.ee/ourshawnmcbride
NOTE: While legal issues are discussed this is education and is not legal advice. It is not a substitute for the advice of an attorney. Please consult your own attorney on your situation and to get legal advice about your circumstances. Courts are unpredictable may disagree with the author’s opinions.
Unless expressly stated otherwise statements are the opinions of the author and may or may not come true. Consult your advisors before making or refraining from any actions.
This is a business article by McBride For Business, LLC which is separate from the law firm of The R. Shawn McBride Law Firm, PLLC. McBride For Business, LLC offers business consulting, conference speaking, training and other non-legal services.
This is not financial, legal or investment advice.