Tesla Faces Crucial Shareholder Vote on Musk's $56 Billion Pay Package Amid Opposition

May 17, 2024, 06:58 AM

Tesla is approaching a crucial shareholder vote to decide on CEO Elon Musk's compensation package, which could grant him up to $56 billion. The package, initially approved in 2018, is performance-based and designed to reward Musk for achieving high-risk, ambitious goals. Despite some support, there is significant opposition, including from Tesla's top retail investor, Leo Koguan, who voted against restoring the $50 billion pay package. The company has faced legal challenges, including allegations of attempting to silence critics, such as Charles Elson, of the compensation plan. Tesla's chair, Robyn Denholm, described the vote as a 'Mount Everest' challenge, emphasizing the difficulty in securing the required shareholder approval.