“We didn’t talk about time,”
“He was focused on achieving results, not on any quantum of time he would need to spend,” Denholm said. She adding that she doesn’t know how many hours Musk — who last month took over Twitter after paying
“I’m not concerned about time,” added Denholm, who was a member of the compensation committee at the electric car and solar panel maker that developed the plan. “I know periods of time where he is sleeping on the factory floor.”
The lawsuit alleges that the performance-based stock option grant was negotiated by the compensation committee and approved by
The lawsuit alleges that the proxy wrongly described members of the compensation committee as “independent,” and characterized all of the milestones that triggered vesting in the stock options as “stretch” goals meant to be difficult to achieve, even though internal projections indicated that three operational milestones were likely to be achieved within 18 months of the stockholder vote.
Attorneys for the defendants have noted that two institutional proxy advising firms that urged shareholders to reject the plan nevertheless noted that it would require “significant and perhaps historic achievements” and require growth that “appear stretching by any benchmark.”
“I thought they, at the time, were quite audacious,” Denholm said of the milestones.
The plan called for Musk to reap billions if
Each milestone in the plan includes growing Tesla’s market capitalization by
To date,
Shares of
Attorneys for the plaintiff have suggested that incentivizing Musk to remain at Tesla’s helm by offering a huge compensation package was unnecessary, because he’s never suggested that he might leave. They’ve also suggested that Musk’s true motive in negotiating the package was to fund his dream to colonize Mars.
Denholm said the primary issue was not how Musk might spend the proceeds of his option grants, but ensuring that he was motivated and committed to Tesla’s success.
“Quite honestly, I don’t know how much it costs to do any interplanetary travel,” she said.
In a
“Given that this will all go to causes that at least aspirationally maximize the probability of a good future for humanity, plus all
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