Rolling coverage of the latest economic and financial news
- Federal Reserve holds interest rates at two-decade high as it waits for inflation to cool
- Should Tesla pay Elon Musk $45bn? The shareholders will decide
SpaceX and its chief executive, Elon Musk, were sued on Wednesday by eight engineers who say they were illegally fired for raising concerns about alleged sexual harassment and discrimination against women, their lawyers have said.
The lesson of the Tesla pay packet saga, our financial editor Nils Pratley wrote this week, is that being a director of a listed company involves more than being a cheerleader in the Elon Musk fan club.
But before this saga slips out of the headlines, there is the small matter of what the Delaware judge, Kathaleen McCormick, actually said in her 200-page judgment in January. Read the whole thing and the board of Tesla in 2018 comes across as a collection of patsies who were so in thrall to the boss that they were incapable of running even a semi-robust process for setting his incentives.
Nobody disputes that Tesla’s share price had to perform a minor miracle to deliver Musk’s prize in full: from a valuation of $50bn-ish, the requirement was to get above $650bn by 2028 (which actually happened in just three years). Rather, the problem was the people Tesla put in charge of negotiating with Musk to determine a fair jackpot.
Continue reading…Rolling coverage of the latest economic and financial newsFederal Reserve holds interest rates at two-decade high as it waits for inflation to coolShould Tesla pay Elon Musk $45bn? The shareholders will decideSpaceX and its chief executive, Elon Musk, were sued on Wednesday by eight engineers who say they were illegally fired for raising concerns about alleged sexual harassment and discrimination against women, their lawyers have said.The lesson of the Tesla pay packet saga, our financial editor Nils Pratley wrote this week, is that being a director of a listed company involves more than being a cheerleader in the Elon Musk fan club.But before this saga slips out of the headlines, there is the small matter of what the Delaware judge, Kathaleen McCormick, actually said in her 200-page judgment in January. Read the whole thing and the board of Tesla in 2018 comes across as a collection of patsies who were so in thrall to the boss that they were incapable of running even a semi-robust process for setting his incentives.Nobody disputes that Tesla’s share price had to perform a minor miracle to deliver Musk’s prize in full: from a valuation of $50bn-ish, the requirement was to get above $650bn by 2028 (which actually happened in just three years). Rather, the problem was the people Tesla put in charge of negotiating with Musk to determine a fair jackpot. Continue reading…
