Elon Musk's $1t Pay Deal Is a Troubling Display of Corporate Capture

That seems like a bad incentive. If someone had a debt to the IRS or a bad divorce and needed the extra money, do you want them to start taking moonshoots with their companies? You want them to do right by their companies not themselves.

Already with performance based compensation you have the problem with rewarding executives with the general market as opposed to their own performance. I mean, potentially Jensen Huang is terrible at his job and Nvidia is only making half of the money it should but the AI boom is covering for it.

100% performance means no one would man the ship of a failing company trying to correct the course.

Yes, provided the performance is sustainable rather than making a number this qtr or next.

Why? That just incentivizes the wrong things.

This is my view too. The shareholders voted for it.

Granted, Musk (or maybe it was a couple board members) did make some strong statements that felt like threats (that if the vote didn’t go through, Musk was going to leave).

But still, it went to a vote.

> Shareholders voted for it. Don't understand how the will of Tesla Shareholders is a corporate governance failure... couldn't read the rest of the article behind paywall, but the premise seems so borked that I'm not going to bother.

Sounds like a failure on to think critically.

The board consists of long time friends of Musk's, people who are heavily invested in his other companies (and so have and want to continue maintain their positive relationship with him), and his brother.

It's not that the board can't vote, it's that the board isn't remotely independent. And according to the WSJ A number of members of the board have hung around many late nights doing drugs with him.

And to be clear it's that that their doing drugs, it's that if you're close enough with someone to be regularly doing hard drugs with them you clearly aren't independent.