Obscene as Elon Musk’s 13-figure package looks today, tomorrow it may be table stakes https://t.co/wMAhkIxG72 ...

The White House has struck a deal with two more drugmakers: Eli Lilly and Novo Nordisk. Centers for Medicare and Medicaid Services administrator Dr. Mehmet Oz discusses the administration’s plan to make GLP-1s more affordable for Americans. Tesla shareholders voted to approve Elon Musk’s $1 trillion pay package, as long as he reaches their lofty goals for the company. Musk biographer Walter Isaacson discusses the plan of milestones and Musk’s history of exceeding investor expectations. Plus, U.S. airlines a ...

NEWS: "Tesla Shareholders Deliver a Trillion-Dollar Win for Elon Musk at 2025 Annual Meeting"In a move that underscores Elon Musk's unrivaled influence over Tesla's future, shareholders at the company's annual meeting on November 6 overwhelmingly approved a landmark compensation package for the CEO that could ultimately be worth nearly $1 trillion. The vote, held at Tesla's Austin headquarters, capped off a lively session filled with product teases, robot dances, and Musk's signature blend of futurism and s ...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. A recent Reddit post from an executive assistant at a large tech company sparked a heated debate after they revealed that their boss, the vice president of business development, earns roughly 22 times their monthly pay. “My manager’s monthly salary is $92,000 more than mine,” the assistant wrote. “To this day, I can’t understand what he does to earn that much.” According to the assistant, he strolls in at ...

Core Viewpoint - Tesla's recent communication to investors emphasizes the urgency of approving Elon Musk's $1 trillion compensation plan, framing it as essential for retaining his leadership and ensuring the company's growth potential [1][11]. Group 1: Compensation Plan Evolution - The board's initial 10-year compensation plan for Musk, valued at approximately $55 billion, was approved in 2018 but later rejected by a Delaware judge in 2024 [3]. - Following the rejection, Tesla attempted to reaffirm the plan, citing fairness and the need to honor commitments made to Musk [9]. - The 2025 proposal has shifted focus from fairness to the necessity of retaining Musk's vision and leadership, highlighting the potential loss of value for Tesla without him [11]. Group 2: Investor Communication Strategy - Tesla's chair, Robyn Denholm, has articulated that failing to provide Musk with adequate compensation could result in losing his "time, talent, and vision," which have been crucial for shareholder returns [2]. - The company has actively sought shareholder approval for the compensation package, employing advertisements and countdowns on its website to generate support [15]. - Despite opposition from institutional investors and proxy firms, Tesla's messaging has increasingly emphasized the alignment of Musk's compensation with shareholder interests and performance targets [14]. Group 3: Structural Changes in Compensation - The latest proposal allows Musk to vote with earned shares before they vest, enhancing his voting power compared to the previous stock options [12][13]. - Significant pay-for-performance measures are included in the new plan, aiming to address concerns regarding the size of the compensation by linking it to specific performance milestones [14]. - The board's independence and ability to monitor management remain points of contention, with ongoing skepticism about the governance structure [16][17].

Core Viewpoint - Tesla's Board Chair, Robyn Denholm, defends CEO Elon Musk's controversial compensation package against proxy advisory firms ISS and Glass Lewis, arguing that their evaluations are overly simplistic and do not account for Tesla's unique challenges [1][2]. Group 1: Defense of Compensation Package - Denholm criticizes ISS and Glass Lewis for their "one-size-fits-all" approach, stating that they are "fundamentally unable" to evaluate Tesla accurately [2]. - She emphasizes that Musk will receive no compensation unless shareholders achieve exceptional investment returns, and he could gain additional voting rights by meeting ambitious market capitalization and operational goals [3]. - Denholm asserts that Musk must lead Tesla to $400 billion in Adjusted EBITDA, which requires a growth of approximately 26 times the current figure, countering claims that the milestones are too easy [4]. Group 2: Investor Appeal - Denholm urges investors to disregard the advice of ISS and Glass Lewis and to support the Board's recommendations, framing the decision as a choice between innovation and traditional automotive practices [5]. - Experts have mixed opinions on the compensation package; while some, like Ross Gerber, criticize it as "insanity," others, including Cathie Wood, defend it and predict it will pass at the shareholder meeting [6][7]. Group 3: Company Performance Metrics - Tesla is noted for strong performance in Momentum, Quality, and Growth metrics, although it is rated poorly on Value [8].

Core Viewpoint - The state Supreme Court is reviewing arguments regarding the fairness of Tesla CEO's compensation to shareholders [1] Group 1 - The dispute has been ongoing, indicating a significant concern among stakeholders about executive pay structures [1]

Executive Accountability - The downfall of a prominent Japanese CEO serves as a reminder of the increased expectations associated with high executive compensation [1] Global Business - The article highlights the case of a Japanese CEO, suggesting broader implications for executive leadership globally [1]

Core Insights - CEO pay at top American companies reached a median of $16.8 million in 2024, marking a 7.4% increase from the previous year, while average worker pay rose by less than 4%, insufficient to keep pace with inflation [1][2] Executive Compensation Structure - Executive pay is typically structured with multiple components, including performance-based pay linked to company stock performance, base salary, bonuses, stock awards, stock options, and perks [4][7] - Compensation decisions are made by a board compensation committee, often with external consultant support and some input from shareholders [4] Historical Trends - There is a significant and widening gap between executive pay and worker pay, with CEO-to-worker compensation ratios increasing from 21-to-1 in 1965 to 290-to-1 in 2023 [7] - From 1978 to 2023, CEO pay increased by 1,085%, while typical worker compensation only rose by 24% [7] Comparative Metrics - CEO compensation has outpaced that of other high earners, such as senior lawyers and investment bankers, indicating a unique trend where CEO pay has grown faster than the top 0.1% of wage earners [8][9] - The compensation structures for CEOs have increasingly been tied to equity grants and performance shares, allowing for exponential growth when stock prices rise, unlike other high-income professionals whose earnings have tracked broader economic trends [9]

Company Focus - Tesla is heavily promoting the concept that Elon Musk requires increased compensation [1]