Elon Musk Fuels Record C.E.O. Paydays

admin June 27, 2022

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Mask puts executive compensation on track

In 2018, Elon Musk announced a groundbreaking compensation plan consisting solely of huge stock swaps related to Tesla’s performance. This plan linked his compensation to Tesla’s future value and the ability of the electric vehicle company to achieve its highly ambitious goals for sales and operating profit. Gambling seems to have paid off. Musk has received over $ 60 billion in award shares so far. But masks aren’t the only ones that are making a profit. Compensation experts say they see the impact of Mr. Musk’s transactions everywhere.

Executives are earning record compensation, Times Peter Evis writes. In 2021, all 10 top-paying executives received over $ 100 million in compensation, according to a survey of 200 large companies by compensation consultancy Equilar. Their average reward was $ 330 million, the highest ever. The median chief executive officer earned $ 32.1 million in 2021, up 27% from $ 25.3 million in 2020, much higher than in the pre-pandemic year.

Some of the top earners:

Jeff greenThe CEO of The Trade Desk, a digital advertising company, $ 835 million Last year he became the highest-paying executive in the survey.
Jig sera finQualtrics CEO, second last year, $ 541 million.. This was the fourth highest amount in the last five years.
Peter KhanExpedia CEO is in 3rd place and deserves payment $ 296 million.
Sue Navi, Koti’s CEO was the only woman among the 20 top paid executives.She ranked in 5th place $ 284 million As a price.

Many of the top revenue earners received much larger salary packages than the CEOs of larger, more profitable companies. Apple CEO Tim Cook was the first equity award winner since 2011, with a total reward of $ 99 million and ranked 13th in the survey. Moreover, in certain respects, last year’s largest paid transaction was not as demanding as Mr. Musk. For example, Trade Desk’s Green had no business goals to achieve.

The bear market can change things. The total compensation is taken from the company’s financial statements, but in many cases it is just an estimate that can change with stock price fluctuations. The recent plunge in Tesla’s stock price means that the stock Musk received from the 2018 award is significantly less valuable than it was just a few months ago (and his obvious when buying Twitter). May help explain the jitter).

What’s happening

Russia has missed its debt deadline. The $ 100 million interest payment grace period ended on Sunday night and appeared to have pushed the country into the first foreign debt defaults since the Borsheviki Revolution. Russia’s state news agency reported that the government did not consider themselves to be the default as it struggled to pay despite Western sanctions.

China’s industrial profits will be sluggish for two months. The National Bureau of Statistics reports that after a 8.5% decline in April, last month’s corporate profits fell by more than 6% compared to May last year.Strict Covid restrictions have been relaxed in major cities, but economic instability and reduced production Cloudy outlook For a quick economic recovery.

Ghislaine Maxwell’s decision faces a potential delay. A former companion to shameful financier Jeffrey Epstein, who was convicted of sexual trafficking and conspiracy last year and will return to court on Tuesday, said: About suicide monitoring..Her lawyer says she is not suicide, but she may seek an extension as she moves Preparation for hearing difficult.

Frontiers support the battle of spirit. An influential shareholder advisory service, the Institute Shareholder Service, overturned a previous statement, stating that Spirit Airlines investors should vote for a merger with Frontier Airlines over a rival offer from JetBlue Airlines. There is.The reversal will occur after Frontier has increased its offers prior to this week’s shareholders’ meeting, and after a global M & A hit. Dry spell..

Subpoenas are piled up for SPACs planning to acquire former President Donald Trump’s media company. A New submission to SEC All directors of Digital World Acquisition Corp. state that they have been issued a subpoena by a federal grand jury in the Southern District of New York. The Digital World disclosure is the first sign that a federal prosecutor in Manhattan has joined the scrutiny of the Digital World and Trump Media merger, which has been investigated by financial regulators for several months.

Venture capital owned by the majority of blacks raises new funds

DealBook learned that MaC Venture Capital, one of the few black-owned VC companies, has raised $ 203 million for a second fund. The company’s founders include Adrian Fenti, the former mayor of Washington, DC. The company manages more than $ 90 billion and is smaller than Vista Equity Partners, founded by prominent black investor and philanthropist Robert Smith.

MaC, which currently manages more than $ 400 million, is one of the majority of black-owned venture capital, alongside Harlem Capital, and is obliged to invest in a variety of funds. “I’m not sure the market still sees diversity as an economic force,” Marlon Nichols, one of the company’s former founders at Intel, told DealBook. “This is a good thing, so I know more.”

Like most VC funds, MaC is entering the higher-risk technology market, and some start-ups that have invested are struggling. MaC, an early investor in esports company FaZeClan, announced plans to open it through a merger with SPAC in October, as reported by DealBook. The deal now seems to move forward, but it was postponed after FaZe announced disappointing performance. MaC is also investing in Artie, a gaming platform company that is expanding into the NFT market, backed by NBA star Kevin Durant.

However, as venture capital trading slowed overall, investment in companies founded by blacks fell by more than half. After the summer of racial calculations in 2020, many banks and venture companies have promised to support black companies and have promised to invest in a variety of funds. Investment in start-ups founded by Black increased to $ 1.2 billion in the first quarter of 2021. Crunchbase.. Venture capital firms invested only $ 324 million in a black-founded company in the second quarter of 2022. This is a decrease of nearly 75% from the 2021 quarterly high. “I think the place we sit in today is like a business as usual,” Nichols said.

“I tell every business and every woman that we should do our best for the women who work for them. They face the very real health challenges women will face. You need to make sure that it is supported. ”

— Stacey Abrams, Georgia Democratic Politician, Speak on CNN State abortion prevention policies and how businesses should respond to Friday’s Supreme Court ruling.

Disney head streamer

One of Disney’s most powerful executives was a former electrician, whose first job at the company was an intern in the DVD division. Kareem Daniel is now responsible for ensuring that Disney’s streaming services are flooded with enough content to strain rivals, reports Brooks Burns of the Times.

Daniel is the first black executive to run a major division in Disney’s 99-year history. Daniel received an internship while earning an MBA from Stanford University after an interview with Bob Chapek, now Disney CEO but then low-level executive. Daniel returned to Disney in 2007 after spending three years as a media-focused associate at Goldman Sachs. The growth of Disney +, Disney’s streaming service with 138 million subscribers, exceeded Daniel’s expectations.

But as rivals, including category leader Netflix, struggle to keep growing, there is increasing pressure on Daniel to keep achieving Disney’s high streaming goals. As Chairman of the Disney Media & Entertainment Distribution Division Daniel is, in effect, Disney’s top content traffic officer, deciding whether to stream $ 33 billion of movie and television content annually, route it to traditional television channels, or theaters. Disney wants to nearly double the number of Disney + subscribers worldwide by 2024 and ensure the profitability of the service by the end of the year. And if taking on Netflix wasn’t enough challenge for the confessed hard-workers, Daniel is partially monitoring Disney’s efforts to build a version of the Metaverse.

Some Hollywood creatives are skeptical that Daniel can carry out his mission. Daniel is not well known in the entertainment world and has no experience in creating content. For many in Hollywood, the rise of Daniel is another sign that content creators have been overtaken by bean counters, with greater power under Chapek, who took top Disney positions in early 2020. We believe it is part of the reorganization of.

Daniel’s plan is to focus on budgeting, leaving content decisions to the creative. But it’s a heavy top-down approach. Daniel’s team is data-driven and, according to research, budgets for different departments based on the type of content that can drive subscribers and ticket sales.

Executives who are obsessed with movies known for quoting “The Breakfast Club” and other classic lines are gaining fans. Maha Dakil, an agent of creative artists who support clients such as Tom Cruise and Natalie Portman, told the Times: And above all, I’m sure he really loves movies. “

Speed reading

Deals

Abortion ruling

The Times keeps track of the companies they offer to help their employees access abortion services. (NYT)
Some democratic governors have already proved the state’s right to abortion Invite the company to move there. (Market Watch)
Telemedicine counseling to supply abortion drugs could be the center of a new court battle. (NYT)
Technology companies Report abortion-related data To law enforcement agencies. (Secondary)

policy

Airlines blaming FAA Flight delay Prior to the weekend of July 4, we asked the agency for a staffing plan. (AP)
U.S. pays 30 percent more to borrow More than last year In the midst of rising interest rates and inflation. (WSJ)
Food export bans around the world are causing spike At the product price. (Reuters)
Consumers Blame the greed of the company Because of inflation, but economists disagree. (AP)