Tesla Chairman Robyn Denholm urges her shareholders to vote in favor of Elon Musk’s colossal compensation on November 6. “Without Elon, Tesla could lose significant value, as our company may no longer be valued for what we aspire to be,” wrote Robyn Denholm, in a letter to shareholders, reported by CNBC.
The compensation plan presented at Tesla’s next annual meeting could lead to paying up to $1 billion in stock to Elon Musk if the company manages to achieve particularly high goals (24-fold profit multiplication, 8-fold market capitalization, etc.). However, according to Reuters, the plan would allow Tesla’s CEO, already the richest man in the world, to receive considerable sums with more easily achievable goals, such as selling 1.2 million cars a year (that is, less than today).
“Distracted by his other activities”
Elon Musk has repeatedly threatened to leave the company if the compensation plan is rejected. “I just don’t feel comfortable building a robot army here and then being overthrown,” he said last week, attacking the two companies that advised shareholders to oppose the project. The ISS cabinet considered, in particular, that there are “absolute concerns regarding the scale and design of the special remuneration.” Some shareholders also fear that the tech mogul is “distracted by his other activities.” The richest man in the world created his own political party last July.
Elon Musk was criticized for having abandoned the management of his companies, including Tesla, during his stay in the White House, where he was head of “Doge”, the agency in charge of reducing public finances. A previous $56 billion compensation plan, approved by Tesla’s board of directors and a large majority of shareholders in 2018, was rejected by Delaware courtsentered by a shareholder.
Source: BFM TV
