Stakeholders To Vote On Musk’s Billion-Dollar Package 

Tesla’s annual shareholders meeting is this Thursday, and all eyes are on it. The meeting will feature Tesla’s controversial CEO, Elon Musk, and his massive wealth. In 2018, the board of Tesla gave him a pay package, which was then thrown out the window by a judge in Delaware, Kathaleen McCormick, marking the end of the $50 billion pay package. Now, the Tesla board wants to return the pay package to Elon Musk. Moreover, the meeting will also conduct a vote on relocating Tesla away from the judge’s state entirely. 

Tesla is going through one of its toughest times ever. The global unrest and price war for EVs have significantly impacted Tesla’s sales, and this is evident in its stock price. Tesla’s stock price fell more than half from an all-time high of 1 trillion dollars in the latter half of 2021. 

The total amount of the pay package that is supposed to be approved is $49.6 billion as of Friday’s closing price, which is a little low from the price at the time of the decision. 

Tesla’s board think that this pay package is extremely important to ensure that Elon remains fully engaged in running Tesla rather than his other companies. In a letter to Tesla shareholders, the company’s chair, Robyn Denholm, said, “ This is obviously not about the money. We all know Elon is one of the wealthiest people on the planet, and he would remain so even if Tesla were to renege on the commitment we made in 2018. Elon is not a typical executive, and Tesla is not a typical company.” She said it is about how to keep Elon motivated to spend his time running Tesla. Ever since the billionaire bought the social media platform Twitter ( Now X), he has been very busy and less focused on Tesla. 

Leave a Reply