The Prof G Pod with Scott Galloway
Prof G Markets: Paramount’s Suitors, Nepo Babies on the LVMH Board, and Elon’s Voided Pay Plan
Feb 5, 2024
Ed Elson, a seasoned ProfG Media Analyst, joins the discussion on some intriguing market trends. They dive into Byron Allen’s ambitious $14.3 billion offer for Paramount and other potential buyers. The conversation then shifts to LVMH's recent underperformance and issues of meritocracy versus nepotism within elite companies. They also unpack the fallout from Elon Musk's controversial compensation package and its governance implications, shedding light on corporate strategies that could reshape the landscape.
54:31
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Quick takeaways
- The court ruling on Elon Musk's compensation package highlights the importance of independent board members in ensuring fair and responsible compensation practices.
- The conglomerate nature of LVMH and concerns about China's impact on luxury goods have affected its valuation relative to pure-play luxury counterparts.
Deep dives
Elon Musk faces shareholder lawsuit over compensation package
Elon Musk is facing a shareholder lawsuit alleging that his 2018 compensation package breached Tesla's fiduciary obligations to shareholders. The court found that the board failed to engage in meaningful negotiation over the package's terms and that five of the six directors who voted on the package had compromising conflicts or were beholden to Musk. The court ruled that the package, potentially worth $56 billion, was not necessary to incentivize Musk as he already owned 22% of Tesla at the time. This ruling highlights the importance of independent, fiduciary board members in ensuring fair and responsible compensation practices.
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