The president of the car company asks the shareholders for a raise for the CEO. The vote is expected on November 6
Elon Musk needs solid motivation to stay involved with Tesla. The necessary motivation is a $1 trillion compensation package. The chairwoman of the board of directors, Robyn Denholm, in a letter on Monday, asked shareholders to vote on November 6 on the compensation package of almost $ 1,000 billion for the company’s CEO, Elon Musk, who would then be entitled to more than 423 million additional shares.
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Denholm wrote that Musk is critical to the future of the automaker, which is focusing on fully autonomous driving and the Optimus robot. He added: “Without Elon, Tesla could lose value significantly, as our company may no longer be valued for what we aim to become.” Last week, a group of unions and corporate watchdogs launched the website Take Back Tesla to oppose the pay package, highlighting Musk’s embrace of right-wing political movements and the amplification of conspiracy theories that have damaged the brand.
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Musk’s request would be to increase his shareholding from the current 13 to 25%. In exchange it should satisfy some requests. These include the commitment to remain at the helm of the car brand for another seven and a half years; and then move the current capitalization which is around 1,400 billion dollars to the figure of 7,500 billion. What will happen will be known, as mentioned, on November 6th.