World’s first trillion-dollar incentive package has arrived here for the chief executive in the corporate world of USA!
Guess who it is for? It is an easy answer…it is for Tesla (TSLA) CEO, Elon Musk!
Capitalism is great. Isn’t it? I love capitalism! In it’s true form only, though, unfortunately, it is not! That is a sad state of our once-great-nation!
It has been a sad and gradual descent from pure capitalism here in the U.S. into crony capitalism over the last 4 decades and into worse yet, capitalism run amok and now it is squarely in a “Wild Wild West” territory!
“Democracy is the worst form of Government, except for all those other forms that have been tried from time to time” Winston Churchill.
Similarly, capitalism is the worst form of economic system except for all others (read socialism and worse yet communism).
Of course, this incentive package means nothing or not much until all the targets (12 of them to be exact) are hit!
On the one hand, folks are having trouble making a “livable” wage with no increase in the federal minimum wage rate since 2009 at $7.25. In case, if you read it wrong, yes, it is $7.25. Of course, many states have done their part, however, small, to soften the blow, yet, it is not anywhere near enough for many. I always wonder when do people wake up?
On the other hand, there are these lavish packages that are being granted by the board (rather cronies) at the company in the U.S. that their counterparts in Europe and other developed economies would feel disgusted to even conceive of.
To make it easy for cronies, even more worrisome factor is a 3% limit set for the shareholding in order for the shareholders to file the lawsuit and challenge any of it. How can we forget that the prior lavish package of $56 billion (yes, it is a ‘b’ in billion, not ‘m’ in million) was challenged and invalidated by the Delaware court that is still being contested by Tesla and it’s eccentric at best CEO, Elon Musk.
Clearly, the valuation of TSLA is an entirely different matter, which I will address in a coming post, hence, what that $56 billion package or even a freshly minted package of $1T truly means. Regardless of what it means, one thing is certain…in a meantime, Musk is certainly enriching himself with the wealth of out-of-proportion that the board is working even harder towards the goal of ‘bestowing’ him with the world’s first trillionaire status.
No wonder he has already reached the world’s richest man status for quite some time now and will remain there until something hits, a topic of discussion for another time. Did I even mention that the worst ever investment he ever made – investing in tune of close to $300 million by helping an extreme right and crazy, evil, lunatic win the highest office of the land on the face of this mother earth – only to back fire in a short few months!
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