In order not to vary Elon Musk is giving something to talk about. With a compensation package of tesla which amounts to $56 billion dollars, the largest in history for a CEO, the businessman faces strong resistance from some shareholders, who consider this sum exaggerated, especially at a critical time for the company.
In 2018, Musk and Tesla’s board of directors agreed to a compensation package tied to the company’s performance. However, with Tesla laying off 14,000 employees and reporting a drop in sales for the first time in four years, many partners have decided that now is not the right time to shell out such a sum.
A Delaware judge has backed this view, calling the deal “deeply flawed” and blocking payment.
In response to the court ruling, Elon Musk has proposed moving Tesla’s legal headquarters from Delaware to Texas and holding a new vote, whose result will be known on June 13.
In accordance with The Verge, Tesla’s board of directors is working to secure shareholder support. Robyn Denholm, chairwoman of Tesla’s board of directors, has sent a letter to shareholders warning that if they do not approve the compensation package, Elon Musk could leave his position as CEO.
“Elon is not a typical executive, and Tesla is not a typical company. Motivating someone like Elon requires something different,” he wrote.
Tesla’s success is undoubtedly tied to Elon Musk’s vision and leadership, but shareholders are concerned about his distractions with other projects, such as X and SpaceX.
So far, the vote seems to favor Elon Musk. 25% of shareholders have already voted and 80% are in favor of the compensation package.
However, Musk is not satisfied with payment alone; It also wants to increase its shareholding from 13% to 25% to integrate artificial intelligence and autonomous vehicle technology into Tesla.
If his demands are not met, Musk has threatened to found an independent company to pursue these innovations.
Related: Elon Musk increases the salary of Tesla AI engineers to avoid the flight to OpenAI
