Yes, but he didn't negotiate $0 in a vacuum, I assume he was factoring in the performance-based stock compensation too, in agreeing to take $0, no?
He agreed to forgo one type of compensation in favor of another type, that was later yanked away from him under the reasoning that his compensation package was deemed retroactively excessive.
I imagine a scenario where I take a slightly lower base pay for a higher number of RSUs, that are only unlocked if I meet my performance goals. I then proceed to meet or exceed these performance goals, as the contractual agreement specified. And then the government, acting on behalf of a shareholder who used to hold 8 shares total, complains that my compensation package was retroactively excessive, even though he hadn't raised this concern earlier.
I'd feel unfairly cheated in that scenario, and I can't help but figure Elon probably feels the same way. I know he isn't going to starve to death or anything, but it seems bizarre and worrying to me that it's just perfectly fine to invalidate what was a perfectly fine and legal contract 5 years after it was signed because a minor stakeholder of one party to the contract didn't like the terms.
Does this undermine the trustworthiness and stability of executive compensation contracts, or really any compensation contract, broadly in the US? Do I ever need to be worried about getting rug-pulled the way Elon was?
I fear this precedent may be abused against "the little guy" / the working class in the future.
He agreed to forgo one type of compensation in favor of another type, that was later yanked away from him under the reasoning that his compensation package was deemed retroactively excessive.
I imagine a scenario where I take a slightly lower base pay for a higher number of RSUs, that are only unlocked if I meet my performance goals. I then proceed to meet or exceed these performance goals, as the contractual agreement specified. And then the government, acting on behalf of a shareholder who used to hold 8 shares total, complains that my compensation package was retroactively excessive, even though he hadn't raised this concern earlier.
I'd feel unfairly cheated in that scenario, and I can't help but figure Elon probably feels the same way. I know he isn't going to starve to death or anything, but it seems bizarre and worrying to me that it's just perfectly fine to invalidate what was a perfectly fine and legal contract 5 years after it was signed because a minor stakeholder of one party to the contract didn't like the terms.
Does this undermine the trustworthiness and stability of executive compensation contracts, or really any compensation contract, broadly in the US? Do I ever need to be worried about getting rug-pulled the way Elon was?
I fear this precedent may be abused against "the little guy" / the working class in the future.