Tesla's Board Proposes $1 Trillion Compensation Package for Elon Musk
Tesla's board has proposed a compensation package for CEO Elon Musk that could reach an unprecedented $1 trillion. This has sparked controversy among investors and analysts, who question its fairness and the company's governance. Meanwhile, Tesla's recent sales decline has raised concerns about Musk's public image and the company's competitive edge.
The proposed compensation is strictly linked to Tesla's stock performance and specific achievements. Musk must increase the company's value eightfold, sell one million AI robots, and twelve million vehicles to qualify for the full amount. The plan consists of 12 increments, each tied to specific market value milestones and operational targets.
Tesla Chair Robyn Denholm has defended the proposal, stating that retaining Musk is crucial for achieving the company's long-term vision. She believes the incentive is necessary for maximum performance.
However, a coalition of investors, including the SOC Investment Group and state treasurers from Nevada, New Mexico, and Connecticut, has called on other Tesla shareholders to vote against the package. They cite its unprecedented size and express doubts about proper governance at the upcoming annual general meeting in November. Analyst Dan Coatsworth has also expressed skepticism about the fairness of the proposed compensation and the board's decision to reinforce Musk's position.
The proposed $1 trillion compensation package for Elon Musk has sparked debate among investors and analysts. While Tesla's board and chair argue it's necessary for maximum performance and retaining Musk, a coalition of investors and analysts question its fairness and governance. The final decision lies with Tesla shareholders at the upcoming annual general meeting.
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