Tesla Shareholders Rebel Against $1B Elon Musk Payout Proposal
Tesla's board has proposed a billion-dollar compensation package for CEO Elon Musk, set to be voted on at the upcoming shareholders' meeting in November. The proposal follows intense negotiations and previous legal challenges, with Musk threatening to leave if not granted more voting rights. However, many shareholders are now expressing their dissatisfaction and calling for a review.
The proposed payout, valued at $1 trillion, is the largest in corporate history. It comes amidst declining operational and financial metrics, with shareholders citing a lack of real-time leadership. A coalition opposing the payout includes the treasurers of Nevada, New Mexico, and Connecticut, as well as prominent shareholders like SOC Investment Group and several state officials. They argue that the board's 'relentless pursuit' of keeping Elon Musk is hindering Tesla's key goals. The opposition also extends to the re-election of directors Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson.
The proposal was presented after serious negotiations with the relevant board committee, with Elon Musk himself involved in the discussions. It was part of a negotiation leading to the proposal, where Musk sought a path to 25% voting rights.
The proposed compensation package for Elon Musk has sparked significant backlash among Tesla shareholders. With the vote set for the next shareholders' meeting in November, the board faces a challenge in pushing through the largest corporate payout in history amidst concerns about leadership and operational decline.
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