Part 3/10:
Tesla's Legal Battles: Shareholder Litigation and Compensation Controversies
The first major topic discussed concerns a shareholder group urging the NASDAQ to investigate Tesla’s executive compensation, specifically Elon Musk's $29 billion pay package. The controversy revolves around the legal and procedural legitimacy of approving large stock option grants.
Herbert clarifies that such share allocations are routine in major corporations, approved long ago by shareholders, and tied to pre-established reserve shares. These shares are often allocated to executives through stock options, which are granted based on performance benchmarks and approval at shareholder meetings. The current legal scrutiny appears to target the process and the timing of these grants.