- NIA Impact Capital founder Kristin Hull believes that the court judgment is a reflection of the power of a shareholder especially when the board is not functioning effectively.
- Law professor at The University of California, Adam Badawi, suggests that the ruling, if upheld, could greatly impact Musk’s net worth.
- Ross Gerber, overseer at Gerber Kawasaki Wealth & Investment Management, asserts that the current board is deemed non-independent and they need to seek independent entities to negotiate a new pay contract.
- John Coffee, law professor at Columbia University, deems a board ‘shakeup’ unnecessary as merely hiring one or two independent directors would suffice.
Here’s what some major players have to say about the recent court decision:
Kristin Hull’s Analysis
Kristin Hull, the creator of NIA Impact Capital, an investor of Tesla, gives her take on the ruling and suggests the verdict demonstrates the influence a shareholder can exert especially when the board is failing to perform its duties. She states that the board appears to be at his mercy and that the company seemingly perceives itself as above legal boundaries.
Adam Badawi’s Interpretation
Adam Badawi, a legal scholar at University of California, Berkeley, reckons Elon Musk could lose a significant portion of his net worth if the court ruling persists. He further reveals that the decision implies more than just Musk losing money; it’s about revising the process and adjusting pay in a way that aligns with shareholder interests.
Ross Gerber’s Perspective
Ross Gerber, Head and CEO of Gerber Kawasaki Wealth & Investment Management, shows a tough stance, saying the current board lacks the independence needed to negotiate Musk’s new pay package. If they can’t bring in autonomous members to negotiate the pay contract, it’s likely to be discarded. He also reveals how the entire corporate composition of Tesla has been marked as inappropriate for a publicly traded company.
John Coffee’s Insight
John Coffee, a professor of law at Columbia University, envisages Musk appealing the ruling given he has little to lose from doing so. He does not anticipate any drastic shakeup of the board, insisting that an addition of one or two independent directors should suffice.
In terms of financial markets, the drastic impact this ruling can have on Elon Musk’s personal net worth can lead to shifts in Tesla’s stock price, affecting the valuation and trades related to this tech giant.