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Mark Zuckerberg's biggest challenge yet



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Facebook's hands-off approach to President Trump's post presents Mark Zuckerberg the most serious challenge to his leadership in the company's 15-year history. According to more than a dozen current and former employees, the Times spoke to reporters.

Hundreds of employees (virtually) left the job yesterday to protest the company's decision to allow inflammatory settings from the president on the platform.

• "The hateful rhetoric that advocates violence against black protesters by the US president does not guarantee defense under the guise of freedom of expression," an employee posted on Facebook in an internal message board.

The founders of the social network, Mike Krieger and Kevin Systrom, sold the business to Facebook for a billion dollars in 2012. At that time, the figure seemed incredibly high. Still, Mr. Krieger and Systrom helped build Instagram into a business now worth over $ 100 billion – just for abruptly ended in 2018 over disagreements with Mark Zuckerberg.

They lost a major payday not because they sold too little, but because their pay packages on Facebook ended up being lean compared to the value Mr. Zuckerberg got from the deal.

The lesson many founders take from Instagram is, "don't sell too soon, too little." But Musk's pay agreement for 2018 shows how executives can reap even more money, year in and out, by sticking around:

• He doesn't earn wages, but gets 12 sets of options that win when Tesla hits different milestones related to market capital , Revenue and Revenue.

• The first tranche, worth $ 1.5 billion at current share prices, was triggered when Tesla's market capital held over $ 100 billion for six months.

• Future lots are released for each additional $ 50 billion added to the company's market value. Tesla is now worth around $ 165 billion, which means Musk is likely to receive another portion by the end of the year.

This is the symbol of salary for performance: Mr. Musk makes money only if the shareholders earn even more.

But who deserves the win? The Instagram case posed this as a matter of shareholders (Mr. Zuckerberg) versus the founders (Mr. Krieger and Mr. Systrom). But in the new era of stakeholder capitalism, what about labor, society and others? This question may be more relevant if Mr. Musk moves out of California to a low-tax jurisdiction like Nevada or Texas.

In other words, it's not about Musk deserving the pay, but who else shares the reward along the way.

Yesterday, the Supreme Court unanimously decided against a hedge fund and a union that challenged constitutional control to the board created by Congress in 2016 to repair Puerto Rico & # 39; s ruined economy. At stake were deals that affected millions of people on the island and beyond.

"This is a real case about real things," Justice Minister Samuel Alito said at oral arguments in October last year. Specifically, it is about the largest state bankruptcy in US history, which can set a precedent for pandemic-hit states struggling with debt. Puerto Rico's Economic Supervisory Board put in place a plan last year to cut its territory debt by a third, from $ 129 billion to $ 86 billion.

Attorneys rejected an attempt to undo the restructuring. The hedge fund Aurelius Investment said the board lacked authority to act because its members were not confirmed by the Senate. (The company spent years fighting Argentina in court for a better deal with that country's defaulted debt.) Federal appointments require confirmation by the Senate, but federal officers working in a local capacity – like Puerto Rico board members – do not, .

Several problems for bondholders loom with the board recently estimating it will have $ 15 billion less than expected over the next decade to repay Puerto Rico debt, due to the pandemic's impact on the island's economy.


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