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by kaeresten_dit 1070 days ago
What I don't understand is what the wahalla is really about, seems to be one of two: :the board granted themselves an unusually high amount of stock when it was granted :the company did performed too well in the interim bringing the value of their comp too high

seems odd to me as options are granted to 'upper management' as a performance incentive, so the lawsuit brought forth seems to base level br about the company doing too well , that is to say if it is not about the first reason all along

1 comments

Technically the board is not the management. They have a very indirect effect on stock performance. More importantly, TSLA remained flat (moving around $17) between 2017 and 2020 when this huge payouts were granted:

The Defendants saved their most audacious behavior for 2018. That year, excepting two directors who joined the Board in December 2018, the nonemployee directors received compensation worth an average grant date value of $8,706,126.

Average board member comp is in $100K range.

[1] https://cdn.arstechnica.net/wp-content/uploads/2023/07/tesla...