In the Sammont Upstream, the electric vehicle company said there was a 90-day „compensation agreement“ with its founder and CEO in June. As part of the deal, Musk provided up to US$100 million „from his personal resources“ to cover compensation, according to the statement. I must admit, however, that Musk`s agreement to offer the company the equivalent of insurance coverage is an impressive gesture. Many companies facing higher insurance costs are trying to determine if there is another way to achieve the same result. Some companies in this position come to the hesitant conclusion that they are responsible for the increase in costs. Other companies reduce the amount of insurance they buy, or even try other structures (for example. B, buy Side-A insurance) to try to reduce their costs. Very few companies opt for insurance, and of the few who choose not to buy insurance, they are even less able to have an insurance company equivalent to one of their executives. CONSIDERING that the company has occasionally entered into compensation agreements with its directors (a „compensation agreement“ each) and that it can enter into compensation agreements from time to time; persons in equivalent positions in the company`s subsidiaries (any person who entered into an exemption agreement prior to a change of control „compensation“) where the company is or will be required to compensate and pay or pay certain expenses (as defined in the applicable compensation contract) of each of these beneficiaries resulting from a compensation event (as defined in the applicable compensation contract); At the same time that the compensation agreement was reached in June, investor advisor PIRC asked Tesla shareholders to remove Musk as CEO because of its $55.8 billion bonus package. 3.Compensation. Within 10 business days of filing the application, the recipient receives a valid written claim from the recipient of the exemption, who receives compensation compensation. There are a number of other things in this announcement that raise questions. What exactly does this mean that Musk offers the board „fundamentally equivalent coverage“ – for example, does his hedging company include exclusions? What are the provisions in circumstances where the House is divided – for example, what happens in the event of a claim if a director insists on his own advice? What happens if there is a serious request and the directors want to settle, but Musk himself wants to fight the demand between now and the trial (as he has done in recent months about the defamation complaint against him).
The SEC bid says there is a „binding agreement“ between Musk and the company, so that perhaps many of them and many others will actually be dealt with in the agreement – if so, it`s just another possibility that this deal is so unusual. 6.Company bonds. In exchange for the agreement of the Freedoms Carrier to compensate, in accordance with this Agreement and the other commitments of the liberating agent stipulated in it, the company undertakes to pay a one-time fee of USD 972,361 upon the implementation of this Agreement. In addition, the company is committed to making the best appropriate efforts to obtain the 2020 insurance offer no later than the last day of its life. In the event that the amount of such a 2020 insurance offer multiplied by 0.125 (1/8) is greater than the sole fee paid by the company to the beneficiary of the compensation, the company pays the difference to the beneficiary of the compensation.