Elon Musk has been the face of Tesla for twenty years as an investor and CEO — but when shareholders do not approve his multi-billion greenback compensation bundle subsequent week, issues might change.
Robyn Denholm, chairperson of Tesla’s board, despatched stockholders a letter on Wednesday urging them to approve Musk’s proposed $56 billion pay on the firm’s annual assembly on June 13.
The compensation bundle, which may very well be the highest in U.S. company historical past, was “clearly not concerning the cash,” Denholm wrote.
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As a substitute, Denholm framed the problem as a strategy to incentivize Musk to maintain specializing in Tesla.
“If Tesla is to retain Elon’s consideration and inspire him to proceed to dedicate his time, power, ambition and imaginative and prescient to ship comparable outcomes sooner or later, we should stand by our deal,” Denholm wrote.
Tesla CEO Elon Musk. Photograph by Christian Marquardt – Pool/Getty Photos
Musk’s pay bundle was first authorized by shareholders in 2018 and hinged on Musk main Tesla to attain a sequence of income, market cap, and operational milestones.
One aim, for instance, was growing Tesla’s market cap by virtually $600 billion.
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Musk hit the targets and might need acquired his reward earlier this 12 months — however there was a authorized concern. A Delaware choose overturned the pay bundle in January, calling it “an unfathomable sum” and wrote that “the proxy assertion inaccurately described key administrators as unbiased and misleadingly omitted particulars concerning the course of.”
Now Tesla is making an attempt to maneuver its authorized residence from Delaware to Texas and asking shareholders to approve Musk’s pay once more.
The 2 issues shall be up for vote at Tesla’s annual assembly.
The urged pay would put Musk properly forward of different CEOs. A Monday research from the Related Press confirmed that the highest-paid CEO of a public S&P 500 final 12 months was Broadcom’s Hock E. Tan.
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Tan’s compensation final 12 months, together with base wage, bonuses, and inventory awards, was price about $162 million.
Apple CEO Tim Prepare dinner was third on the listing with an general compensation of $63 million and Netflix CEO Theodore A. Sarandos was fifth, incomes almost $50 million.
Musk additionally owns X, previously Twitter, and leads SpaceX, Neuralink, and the Boring Firm.
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