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How should a corporate board respond to a CEO insulting and smoothing our abuser and sitting sessions?
Several chief administrators dare to dare to dare to criticize the White House, this is not a question that is very important. When CEOS opposes a federal directive, messages are usually delivered behind closed doors or collective open letter. However, this week, Elon Musk has changed all this and the issue spat on a public extended public with Donald Trump.
There were pairs a very expected drop The Trump’s budget is also called the “great beautiful bill” on Thursday, which is also an individual. Musk had time to create a new political party from the social media, will cause Trump’s tariffs with the recession and even claimed The name of this Trump was in government documents about Jeffrey Epstein, the convict’s sexual offender Jeffrey Epstein. “This is the real reason for not being given to the public,” he said.
Feud has already reached a high musk and its many facilities, including Tesla. The shares of the car manufacturer took 14% on Thursday, the shareholders received $ 150 billion and received the most news. Now the analysts think that the Tesla, Trump, Trump, Trump’s tax loans and other measures that increase the profit of electric vehicles and other measures increased. The company can also face the growing regulation barriers around the technology to drive the future of autonomous driving vehicles and as a reason Stock resistant eye opening performance. Tesla’s bull and wedding pelvals from analyst, Ives, when he wrote in the research note, he thought to speak for investors on Friday: “It is necessary to calm down.”
In a constant company, a member of the last few days is a strong chance to twist a board to a board to dismiss a CEO of the Council. But will the TESLA Board Musk protect public shareholders from potential damage?
“These,” These are at the University of Delaware University at the University of Delaware, the founder of the Weinberg Center Charles Elson. Fortune. “But they will not do.”
A quiet board
Trump-Musk Spat is the latest in a number of events that force Tesla’s board actually played the role of the role played in the company.
“During the years, the behavior of a musk was more ugly,” he said. “The absence of the Board’s response is surprising you, ‘Who are these people? Why are they?'”
This faced a long way to be very close to the musket, and therefore wants to ignore many administrative issues. For example, popularly confirmed the observation Very controversial 2018 payment package He witnessed $ 56 billion, the executive authorities and customers who have been a year of high-level dividing behavior in a high-level executive. And Recent claims Echo on the use of drugs in the past, reveals the role of observation in the past without risking the role.
There are several contributor factors as it is. Musk is a manageable shareholder in Tesla where he holds 22% of the voting powerAdditional difficulty to have the votes needed to compel the members of the Board. The board can tank the stock, considering that the musk in this shooting, the company is so closely linked to this fire.
Many director also closes especially for musk. This includes Joe Gebbia, the owner of his brother Kimbal Musk, entrepreneur and restaurant, a cofounder Arab and a friendly friend. You can expect a typical home company, the group does not have a car industry or green energy.
Directors also receive a well-paid. This year, Delaware Court ordered After finding more than $ 900 billion, the plaque paid himself with a lot. Robyn Denholm, Tesla Board chairs, more than 600 million dollars than those in the same position in other companies. The court “compensation was so mean, it was really almost impossible for independent directors,” he said.
“Something is difficult to understand when your salary does not matter if it does not matter,” says Nell Minow, Corporate Governance Specialist, Upton Singer. “This is the plaque.”
To be sure, this year was the fact that the company’s directors of Tesla had more control over the company’s management this year. Last month Wall Street JournalLast month, the board chose to look for a heir and a search firm to help them. He also told the board that he met with Trump Weeks Before you announce Would spend less time in the White House. It seemed that Tesla opposes the backward Attention to the musculosisn and tesla’s Shrink the price of sharingFinally moved the board.
But the board clearly rejected the reportCalled “completely false” with Denholm.
Can anything change?
Given the uniqueness of the conflict, the latest warehouse of Elon Musk’s last storage is in one category.
However, the Board’s specialists agree waiting for the Tesla board. “No longer had to do something on the board” and every time they failed, “said Minow.” I don’t feel like something like ‘now’ now ‘. “
The shareholders have technicalities so that the musk can move the needle if they want. Directors can vote from the Board of the Board of the shareholders with proxy votes and hoping for the musk of new directors. Or put the brand at risk and could attempt to sue the board to prevent the line when sharing the focus between Washington and Tesla. But you need a stock that wants to do this Have up to 3% stakes The company points to Lipton, the Dean and management laws are all for teacher research in Tulane University Law School impossible to make.
“No shareholder will not be able to show that this council will not be able to show that he is not able to change the musk,” he said.
It is still possible that the director of the TESLA Board may try to bring change by offering musk. However, Elson says they had potentially lost their roles and conducted peace.
“They will say:” See, I will vote for him to walk. If I lose it, I leave. I can’t do it anymore, “he says. They do not do that, in principle, it depends on whether he has addition or “comfort people”.
“We have to see,” he said.
This story was first displayed Fortune.com
