A decision by the Delaware Chancery Court last week to nullify Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk’s $56 billion compensation plan from 2018 continues to be debated among social-media users and analysts, and on Sunday, Tesla bull Cathie Wood offered her take on it.
What Happened: “I believe the Delaware court decision, forcing #TSLA to void the March 2018 vote on Elon Musk’s performance-based pay package, is un-American, an assault on investor rights, and an insult to the Board of Directors of one of the most stunningly successful companies in US history,” said Wood in a post on X, formerly Twitter.
The fund manager said she knew Tesla Chairman Robyn Denholm professionally for over 17 years. “Robyn is a professional of unquestionable integrity with a no-nonsense, objective, truth-wins-out philosophy,” she said.
Following the analysis of the Delaware court decision, along with Ark’s legal counsel, Wood said legal nuances and the controversial interpretation of them have “missed the forest for the trees, spectacularly and unfairly.”
See Also: Everything You Need To Know About Tesla Stock
Musk Accomplishes ‘Herculean Task:’ Delving into the 2018 pay award, Wood said Tesla’s board had incentivized Musk with a “Herculean task that most analysts and auto manufacturers did not believe possible.” Ark’s research showed the target, though hittable, can be achieved only with brilliant execution, she noted.
Wood said she was “thrilled” in February 2018 that the Tesla board and Musk were aiming so him toward Ark’s bull-case price target of $4,000 in 2023, or $265 on a split-adjusted basis, compared to the $21 level at which it was trading when the price target was announced.
The fund manager also clarified that Ark, on behalf of its clients, voted for Musk’s compensation, along with about 80% of Tesla shareholders. “Nearly five years later, a Delaware judge has overruled the Board and shareholders, the latter of whom had the benefit of ample debate about the incentive plan’s probability,” she said.
Musk agreed to no salary for the five years, Wood said. Also, she brought up the possibility of Musk receiving much less compensation if he hadn’t hit the lofty goals. “Instead, he shocked and delighted shareholders,” she said.
“Thanks to Elon’s ingenuity…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
