Elon Musk’s $1 trillion Tesla pay plan sparks investor backlash — 3 reasons why
Forbes reported that Tesla investors, including government officials, opposed the $ 1 trillion payment package for Elon Musk in a letter sent last week.
The shareholders sent the letter on October 2, which called other investors to reject the payment package at Tesla’s annual shareholder meeting on November 6. In addition, the letter accused Elon with his struggles to protect Musk for yarmak damaging Tesla’s reputation ”.
Who signed the letter?
Forbes reported that the letter was signed by leading investors, including SOC Investment Group and American Federation; Nevada state treasures, New Mexico, Connecticut, Massachusetts, Colorado and Maryland and New York City controllers.
Tesla Opposition Letter: Top 5 Standing
- Investors express low beliefs to the board side: In the letter, those who signed did not rely on the impartiality of the Board regarding Elon Musk. They claimed that Tesla’s board of directors consists of executives with close ties with CEO ”and that the proposed payment packages provide too much discretion that the shareholders could not be sure of neutral treatment to the board of Tesla.
Tesla’s “negative and highly variable” performance last year, the letter, the board’s ability to provide “objective, meticulous management supervision” criticized.
“We believe that even if these relations are harmful to the value and public shareholders of the company, we believe that the board of directors activates a culture in which Mr. Musk cannot challenge constantly.”
- Elon Musk’s government role causes problems: In the letter, he also accused the board of allowing Elon Musk to separate his “full attention” to Tesla. This was a jibi of the world’s richest man for US politics. As part of the Trump administration, he directed the Ministry of Government Efficiency (DOGE), a task that returned to all brands related to Elon Musk, especially Tesla.
“The Board allowed Mr. Musk to contribute over the years and allowed him to continue as a CEO in other companies, Xai/X, SpaceX, Nevralink and boring company.
- The shareholders announce that they do not approve: In his own statement, New York State Auditor Thomas P Dinapoli said the shareholder would vote against the wage proposal of the New York State Joint Pension Fund.
“Musk’s important share in Tesla could not focus on the company. Twitter.
- Did Tesla answer? Reacting to Dinapoli’s testimony, Tesla’s official account on X justified his payment offer as önürsel Elon’s compensation completely aligning the compensation and creating shareholders ”.
“Tesla’s private committee designed a performance incentive plan that completely aligns Elon’s compensation and the value of the shareholder. Since this time, since this time, since this time, since this time, since this time, since this time, since this time, since this time, it has been difficult since this time.
- What was the Board offer? Last month, Tesla Board offered 12 percent more shares in the company for Elon Musk in his application with the United States Securities and Stock Exchange Commission (SEC) last month. These are adjusted in 12 languages in the next 10 years, subject to the completion of certain objectives. In order to make the entire fee of $ 1 trillion, Elon Musk would have to rocket Tesla’s market value from $ 1.37 trillion to $ 8.5 trillion in the next 10 years.
According to Forbes real -time billionaires, Elon Musk on October 2 was the first to reach a net $ 500 billion in history.
According to a Reuters report that quotes Reuters from Forbes, Elon Musk had a net value of $ 500.1 billion. This is closely dependent on his shares in Tesla, which has received more than 12.4 percent of shares since the middle of September.
(With inputs from agencies)
