By Colin Kruger
How much money is enough? It’s the looming question for Tesla billionaire Elon Musk and his Aussie chair Robyn Denholm, as they attempt to re-energise Tesla shareholders ahead of a meeting seeking to reinstate Musk’s $US56 billion ($84.9 billion) pay packet, which a Delaware judge voided earlier this year.
Last week, Denholm cleared her throat with the sale of $US17 million worth of Tesla shares – taking her total sales this year to $US52 million, according to Bloomberg stats.
Tesla chair Robyn Denholm.Credit: James Brickwood
Denholm then sung her heart out for Elon in a video to their fellow Tesla investors about the proposals to reapprove his mammoth bonus, the largest in corporate history, and move the company’s corporate registry from Delaware to Texas.
“These proposals are absolutely critical to fuel Tesla’s future growth and the value of our investment,” she said.
More critical than slashing 10 per cent of its workforce, huh?
There was also some trash talking of the Delaware judge’s decision to void the bonus.
“We don’t believe one judge’s opinion should void the will of millions of votes cast by all of the owners of the company,” Denholm said.
Just to refresh everyone’s memories a little, let us revisit what the court judgment said exactly.
US Chancery Court Chancellor Kathaleen McCormick found that Musk “controlled Tesla” and that the process surrounding the board’s approval of his compensation was “deeply flawed”.
“Put simply, neither the compensation committee nor the board acted in the best interests of the company when negotiating Musk’s compensation plan. In fact, there is barely any evidence of negotiations at all,” her judgment said.
Put another way, it was Denholm and her fellow board members who didn’t do their jobs.
“Rather than negotiate against Musk with the mindset of a third party, the compensation committee worked alongside him, almost as an advisory body.”
McCormick noted that the “vast majority of [Denholm’s] wealth” had derived from Tesla. Denholm herself has been quoted as describing the sale of hundreds of millions of dollars of Tesla shares in recent years as “life-changing”.
“From my perspective, he is great to work with,” Denholm told the Australian Financial Review back in 2021, when she first made the rich list on the back of her Tesla share options.
“The world would be much better off if we had more Elons,” she added.
THAT’S A RAP
It’s not just sportspeople who have weird little pre-game rituals.
As the nation awaits tonight’s federal budget – the grand final for economic and political tragics – CBD can reveal the pre-budget rites observed by the three top brains behind the big day.
Federal treasurer Jim Chalmers is getting over his 90s rap phase.Credit: Alex Ellinghausen
We are indebted to dear colleague James Massola, who has put in the yards to discover how Treasurer Jim Chalmers, Finance Minister Katy Gallagher and Treasury secretary Steven Kennedy prepare for the biggest day of the year.
Chalmers, an aficionado of rappers Tupac Shakur, Nas and Biggie Smalls, revealed he no longer pumps out the mid-90’s hip-hop on the big days.
The treasurer is more likely these days to turn to Sydney trio Rufus du Sol or Melbourne’s “shimmery dream pop” quintet Snakadaktal on one of his super-early morning runs.
“I used to think running music was super hyped-up music,” Chalmers told us.
“After a while you realise what you’re trying to do is actually calm [down]... the last thing you want is your heart rate galloping before you do something big.”
Jim will approach the dispatch box on Tuesday evening with a note in his pocket from his oldest son Leo, a wristband made by daughter Annabel and wearing a pair of dinosaur socks for his youngest son, Jack.
Kennedy, the nation’s top economic mandarin, reckons he’ll climb into a suit reserved for special occasions for the big day, and once the budget is done and dusted, he’ll take staff out for a drink at Canberra bar QT. Kennedy’s song of choice at the moment is Strung Out Johnny, from Iggy Pop’s 2023 album Every Loser.
But it’s Gallagher who surprised us the most. The no-frills finance minister, who we’ve spotted in the past shopping for kids’ pyjamas in the local Target, said on budget day she likes to shut the door for a few hours and just read. She’ll wear something of her mum’s “so she’s with me” on the day and listen to classical music like Bach to get in the zone.
“Except if I have to go into estimates, then it’s Lizzo, like Bad Bitch O’Clock, if I have to work myself up, then that’s what I’m pumping.”
STRIFE BOAT
While the UK Conservative Party will cling to government until the elections later this year, it won’t change the fortunes of ASX-listed Corporate Travel Management and what was meant to be its lucrative role in Britain’s hardline immigration policy.
Corporate Travel was awarded a two-year, £1.6 billion ($3.2 billion) contract in April last year to manage accommodation for UK asylum seekers. This included the accommodation barge, the Bibby Stockholm – which has become the flashpoint for Prime Minister Rishi Sunak’s “Stop the Boats” policy.
UK Prime Minister Rishi Sunak has led his government with a hardline immigration policy.Credit: Bloomberg
Corporate Travel founder Jamie Pherous admitted that the contract was a bust at the group’s December half results announcement, and his most recent update indicates that things have not improved.
“We’re doing 500 out of the 10,000 we were meant to do,” he said last week of the asylum seeker numbers the group was meant to be managing.
Just as well Corporate Travel still has a business managing traditional corporate clients used to travelling business class, rather than via buses with armed police escort.