Bite-Sized Business Law
Looking for the latest in legal business news?
Get a breakdown of the top stories in business law from industry leaders on the front lines with Bite-Sized Business Law. Host Amy Martella takes a closer look at the latest corporate happenings through interviews with the attorneys, legal experts, public figures, and scholars behind the news to distill business law’s biggest stories into bite-sized portions.
This is your chance to go further into the world of business law and stay up to date with legal cases and industry trends.
Corporations impact us all, leading changes that extend far beyond business to shape the economy, public policy, technology, and beyond. Looking at the big picture, Amy discusses not only the underlying issues in business ethics and legal cases leading the biggest stories but also sparks thought-provoking discussions on where the law should be headed.
Amy is the Executive Director of the Corporate Law Center at Fordham University School of Law. Her background ranges from big law to government to tech startups, allowing her to offer an insider’s perspective of the issues that shape corporate actions, large and small. Covering crypto regulation to securities fraud, AI’s impact to Elon Musk’s pay package, Bite-Sized Business Law covers it all with guests of varying viewpoints to provide the nuanced analysis needed to tackle complex problems.
Whether you're looking for the latest in legal insight on intellectual property, mergers and acquisitions, business ethics or legal cases in the business law world, you’ll find it here. Enjoying a thoughtful perspective on the news stories of the moment, Bite-Sized Business Law examines big issues and delivers them in small doses.
Bite-Sized Business Law is a project by the Corporate Law Center at Fordham Law. The Center serves as a hub for scholars, professionals, policymakers, and students to engage in the study, discussion, and debate of current issues in corporate law. The Center focuses on aspects of corporate law, corporate compliance, antitrust law, and securities regulation. Through initiatives like the Mergers and Acquisitions seminar and the Securities Litigation and Arbitration Clinic, students actively engage in real-world research and cases, bridging the gap between classroom learning and practical application in the legal field.
Bite-Sized Business Law
Trillion Dollar Man
If you thought $56 billion was a big payday for Elon Musk, you won’t believe the new proposal: $1 trillion. What does that type of incentive package even look like and how will shareholders and the public react to the largest CEO payday in history? Ann Lipton, Laurence W. DeMuth Chair of Business Law at the University of Colorado Law School, breaks down Tesla’s unprecedented $1 trillion pay package, starting with the backstory of Musk’s 2018 $56 billion compensation plan, the Delaware litigation that rescinded it, and the board’s recent move to grant him 96 million shares as a hedge against losing on appeal. We then turn to the new $1 trillion incentive plan, which ties Musk’s payout to ambitious milestones, from doubling Tesla’s market cap to delivering 20 million vehicles, selling millions of robotaxis, and expanding full self-driving subscriptions. We explore shareholder approval dynamics, board independence questions, and why the plan is designed to guarantee Musk 25% voting power. Learn how this landmark deal could transform Tesla and set new precedents for executive pay across all American corporations.
Key Points From This Episode:
- Musk’s 2018 $56B compensation plan, why it was struck down in Delaware, and where it currently stands.
- The board’s decision to grant Musk 96 million shares in case he loses the Delaware Supreme Court appeal.
- How Texas law makes shareholder lawsuits against Tesla nearly impossible.
- Tesla’s new $1 trillion, 10-year incentive plan and the milestones tied to Musk’s payout.
- Why reaching milestones early matters for Musk, as early wins allow shares to vest sooner.
- The plan’s lack of requirements for Musk’s time commitment, despite his other ventures.
- How the board is using financial incentives to keep Musk focused on Tesla.
- Why shareholder approval is expected to pass and how it could give Musk 25% voting power.
- Questions raised about board independence and the special committee’s role.
- The consequences of Tesla’s reliance on Musk’s vision to sustain its market value.
- Key financial and tax advantages for Tesla if they win in Delaware.
- Details of the Delaware Supreme Court oral arguments scheduled for October via livestream.
Links Mentioned in Today’s Episode:
Ann Lipton
Ann Lipton on LinkedIn
Ann Lipton on Bluesky
Ann Lipton Blog
Shareholder Primacy Podcast
Delaware Judicial Courts | Live Stream
Fordham University School of Law Corporate Law Center