A Deal is a Deal: The Elon Musk Compensation Saga

A deal is a deal. A contract is an obligation—well, unless you don't feel like it. In 2018, Tesla shareholders voted for a compensation package for Elon Musk that was nothing short of ambitious. The agreement stated that if Musk increased Tesla's market cap to 10 times its 2018 value, he would be granted 10% of the company's shares. Against all odds, Musk delivered, pushing Tesla to unprecedented heights.

However, this achievement didn't guarantee smooth sailing. Unexpectedly, a legal team managed to convince an activist judge in Delaware to void the deal. This ruling sent shockwaves through the business community, mirroring the mass exodus of companies and individuals from New York City due to unfavorable policies. Now, venture capitalists are contemplating moving company domiciles from traditionally favorable Delaware to states like Nevada or Texas.

But the story doesn't end there. Musk called for another shareholder vote, and once again, nearly 75% voted YES to grant him the deserved compensation. Yet, California's influence complicated matters. CalPERS, California's Public Employees' Retirement System, which had voted YES in 2018, switched its stance to NO. After reaping the benefits of Musk's hard work, they reneged on the deal.

This raises a critical question: Can California honor agreements and demonstrate integrity? The All-In Podcast on YouTube delves into the nuances and implications of Delaware's decision, the judge's ruling, the weaponized legal system, and how California's stance could lead it to only secure DEI (Diversity, Equity, and Inclusion) deals, a topic recently debated in Congress during a hearing hosted by Matt Gaetz.

For a deeper dive into these developments and their broader implications, check out the All-In Podcast on YouTube. https://youtu.be/NVYMKDiJGcI?si=rUUvozP5mNQocGBX