Tesla Board Chair Urges Shareholder Support for Musk's $56 Billion Pay Package Amid $735 Billion Market Surge

Jun 10, 2024, 06:00 PM

Tesla's board chair, Robyn Denholm, is urging shareholders to support CEO Elon Musk's $56 billion compensation package. This comes as the company has seen a significant $735 billion increase in market value from 2018 to 2023 under Musk's leadership. However, the proposal faces opposition from major shareholders, including Norges Bank Investment Management and the California State Teachers' Retirement System (CalSTRS). The shareholder vote, set for Thursday, June 13, 2024, has garnered strong opinions, with some investors arguing that Musk's compensation is excessive. Despite this, retail investors, who own a substantial portion of Tesla shares, have shown considerable support for the package, with 90% voting in favor. The outcome of the vote remains uncertain, with implications for Tesla's future direction and Musk's role within the company. Additionally, a Delaware judge's decision to nullify the 2018 compensation deal adds a layer of complexity, as the upcoming vote holds more symbolic weight than legal power.