The Facts
On Tuesday, the head of Tesla's board of directors, Robyn Denholm, testified in a trial challenging a $55B compensation plan for CEO Elon Musk. Denholm said she was focused on the results Musk could deliver, not how much time he would commit to Tesla.
It comes after board member Ira Ehrenpreis took the stand on Monday, where he stated that the largest executive-pay package in US corporate history was determined by the board to keep Musk "engaged" in the company.
The Spin
Narrative A
This compensation plan is clearly excessive. Musk has benefited from his influence over the board's committee — which has falsely claimed that it has no conflicts of interest — and been rewarded for his part-time management role at Tesla, largely on the grounds of milestones that had already been achieved when shareholders voted.
Narrative B
This compensation plan has granted Elon Musk his fair share of Tesla's success, especially considering he took a high risk to receive a high reward. Though Tesla skeptics ridiculed his decision at the time, Musk's management has led the carmaker to increase its value from $59B to $600B, achieving almost all his stipulated performance targets.
