A contract written by yourself (aka: Largest shareholder) given to a board you picked (aka: Chairman of the Board of Directors), giving yourself a payraise (aka: about the CEO's bonus pay) is obviously null and void.
You can't just give yourself a pay-raise. Even if you're the largest shareholder, the controlling member of the board of directors, and CEO of a company.
If you accept the public's money, then the _other_ shareholders, even small minority stakes, have a say in the matter.
If you don't like the fact that Delaware looks out for smaller shareholders, you can I guess move out to other states or something. But for the most part, people accept the fact that public companies have rules that go above-and-beyond normal. Wanton acts of corporate corruption aren't tolerated in Delaware.
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The rule in play here is shareholder fiduciary duty. The Board of Directors failed to represent the needs of all of its shareholders like they are legally obligated to do. A large pay-bonus to a CEO who already controls a large stake in Tesla (who'd benefit from Tesla improving anyway) is obviously a bad move. No other CEO in history had such a large share-increase bonus.
In any case, looking out for the little guy is a deeply American value. We understand the problems associated with Tyranny of the Majority. If you want to fully own a company, then stay a private-business (like the Mars family), don't come begging to the public for public money.
dragontamer|2 years ago
You can't just give yourself a pay-raise. Even if you're the largest shareholder, the controlling member of the board of directors, and CEO of a company.
If you accept the public's money, then the _other_ shareholders, even small minority stakes, have a say in the matter.
If you don't like the fact that Delaware looks out for smaller shareholders, you can I guess move out to other states or something. But for the most part, people accept the fact that public companies have rules that go above-and-beyond normal. Wanton acts of corporate corruption aren't tolerated in Delaware.
--------------
The rule in play here is shareholder fiduciary duty. The Board of Directors failed to represent the needs of all of its shareholders like they are legally obligated to do. A large pay-bonus to a CEO who already controls a large stake in Tesla (who'd benefit from Tesla improving anyway) is obviously a bad move. No other CEO in history had such a large share-increase bonus.
In any case, looking out for the little guy is a deeply American value. We understand the problems associated with Tyranny of the Majority. If you want to fully own a company, then stay a private-business (like the Mars family), don't come begging to the public for public money.
riehwvfbk|2 years ago
PaywallBuster|2 years ago
you seem to have it backwards:
> Typically, the board chooses one of its members to be the chairman (often now called the "chair" or "chairperson")
https://en.wikipedia.org/wiki/Board_of_directors
qwerasdf5|2 years ago