Elon Musk's $45bn Pay Package: Tesla Shareholders Say "Yes"
Hey everyone! Big news from Tesla’s $Tesla(TSLA.US$ recent shareholder meeting: Elon Musk's massive $45 billion pay package got the green light! This comes after a heated debate and a previous court ruling that nullified his earlier, even bigger $56 billion package.
Despite initial pushback, shareholders rallied behind Elon, reaffirming their trust in his leadership. His influence and charisma definitely played a role here!
A Delaware judge had previously voided the earlier package, claiming Tesla's board wasn’t independent from Musk. But with this new vote, Tesla aims to overturn that decision.
Why does it matter? Tesla investors argues the package is essential to keep Elon motivated and at the helm, especially given Tesla’s ambitious targets and achievements under his leadership.
Some big investors and advisory firms opposed the deal, citing concerns about fairness and board independence. However, Elon’s strong support from individual investors made a difference.
This vote reminds us of Elon’s unique position at Tesla. His vision has driven Tesla to incredible heights, but it’s clear there are concerns about how closely tied the board is to him. While the approval is a win for Elon, the legal battles might not be over yet. Moving Tesla’s legal base to Texas could complicate things further.
What do you think? Is Elon’s pay package justified given Tesla’s success, or are there legitimate concerns about corporate governance here?
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ZnWC : Your article is still bias against Tesla. You left out a few important information:
1) Denholm, Chair of Tesla Board has denied that the board and her are too close to EM. They are professional in making sound decisions for the shareholders. Having a good working relationship with the CEO is good for the company and doesn't mean they are not independent.
Tesla chair sees challenges in getting shareholder vote for Musk's pay package, FT reports
2) The vote results showed that the shareholders don't agree with the Delaware Court Judge Kathaleen McCormick's view that "Musk improperly controlled the 2018 board process to negotiate it" and "Tesla failed to fully inform investors before they voted for it (in 2018)". They also don't buy what the proxy advisors (Glass Lexis and ISS) said that ratifying EM's 2018 pay package will "dilute the TSLA share".
Tesla Shareholders Meeting: Proposals 3 and 4 Approved Implication and Outlook
3) The ratification of EM's 2018 Pay Package is not about the money, it is about control. EM wants 25% control of Tesla, enough control to prevent a rogue party taking over and using artificial intelligence technology for wrong causes.
Why I voted FOR the proposal to ratify Elon Musk's 2018 Tesla Pay Package
Ziet Invests OP ZnWC : Thank you for chipping in with these information!