Shareholders are scheduled to vote on Musk's compensation package on June 13, following a court ruling earlier this year that declared the previous approval process "grossly flawed."
New York: Elon Musk, CEO of Tesla, may step down if shareholders reject his proposed $56 billion salary package, according to Robyn Denholm, the chair of Tesla's board. Denholm made this statement in a recent press release, emphasizing that Musk could allocate more time to his other ventures if the package is not approved.
Shareholders are scheduled to vote on Musk's compensation package on June 13, following a court ruling earlier this year that declared the previous approval process "grossly flawed." This ruling necessitated a new vote on Musk's pay.
“Elon is no ordinary executive and Tesla is no ordinary company,” Denholm wrote in a letter to shareholders, which was also submitted to the Securities and Exchange Commission (SEC). Denholm explained that Tesla's approach to compensating Musk is unique and not bound by standard CEO pay rules, highlighting Musk's exceptional contributions and limited availability.
Tesla investors have expressed concerns about Musk's focus, given his commitments to other companies like SpaceX, X, and XAI. The approval of the $56 billion package is seen not just as a financial decision but as a strategic move to retain Musk's leadership, potentially making him the highest-paid CEO in modern history.
Denholm's letter elaborated on the 2018 compensation deal, which aimed to keep Musk focused on Tesla's ambitious goals, including advancements in artificial intelligence and automated vehicles. Musk's proposal to acquire 25 percent of Tesla shares would increase his influence over the company's direction. He has also threatened to spin off Tesla's AI research into a separate entity if his demands are not met.
Additionally, Denholm urged shareholders to approve the relocation of Tesla's headquarters to Texas. Tesla, originally registered in Delaware, has already moved its base to Texas, aligning with Musk's personal relocation.
The outcome of the upcoming shareholder meeting will determine whether Musk remains at the helm of Tesla and continues to drive its innovative projects.
New York: Elon Musk, CEO of Tesla, may step down if shareholders reject his proposed $56 billion salary package, according to Robyn Denholm, the chair of Tesla's board. Denholm made this statement in a recent press release, emphasizing that Musk could allocate more time to his other ventures if the package is not approved.
Shareholders are scheduled to vote on Musk's compensation package on June 13, following a court ruling earlier this year that declared the previous approval process "grossly flawed." This ruling necessitated a new vote on Musk's pay.
“Elon is no ordinary executive and Tesla is no ordinary company,” Denholm wrote in a letter to shareholders, which was also submitted to the Securities and Exchange Commission (SEC). Denholm explained that Tesla's approach to compensating Musk is unique and not bound by standard CEO pay rules, highlighting Musk's exceptional contributions and limited availability.
Tesla investors have expressed concerns about Musk's focus, given his commitments to other companies like SpaceX, X, and XAI. The approval of the $56 billion package is seen not just as a financial decision but as a strategic move to retain Musk's leadership, potentially making him the highest-paid CEO in modern history.
Denholm's letter elaborated on the 2018 compensation deal, which aimed to keep Musk focused on Tesla's ambitious goals, including advancements in artificial intelligence and automated vehicles. Musk's proposal to acquire 25 percent of Tesla shares would increase his influence over the company's direction. He has also threatened to spin off Tesla's AI research into a separate entity if his demands are not met.
Additionally, Denholm urged shareholders to approve the relocation of Tesla's headquarters to Texas. Tesla, originally registered in Delaware, has already moved its base to Texas, aligning with Musk's personal relocation.
The outcome of the upcoming shareholder meeting will determine whether Musk remains at the helm of Tesla and continues to drive its innovative projects.
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