Tesla Chairman Robin Denholm called on the company's shareholders to approve a giant compensation package for CEO Elon Musk worth $56 billion. This is the second attempt after a Delaware court found the first approval “deeply flawed” and canceled it, 3dnews writes, citing The Verge.
Denholm emphasizes that Musk is an extraordinary leader, and Tesla is an extraordinary company, so typical ways to motivate top managers do not work here. He hints that Musk has a choice between Tesla and his many other projects. And if Tesla shareholders do not approve the compensation package, Musk may simply leave.
Many investors worry that Musk is too distracted by other projects. And after purchasing Twitter, his attention to the company decreased even more. At the same time, Musk does not hide his ambitions to obtain a 25% stake in Tesla in order to have more influence.
Thus, Tesla shareholders face a difficult choice: $56 billion is an unprecedented amount for the CEO of a public company (many fear excessive concentration of power in the hands of Musk and the diversion of his attention to other projects). On the other hand, it was his vision and energy that made Tesla a successful innovative company. And if Musk leaves, it could cause serious damage to the business.
The vote on whether to pay Musk will take place on June 13. Shareholders have to answer the question: are they willing to pay $56 billion to keep Musk? Or risk losing it? The outcome of this vote will determine not only the fate of the largest compensation package in history, but also the future direction of Tesla.
