Tesla will be holding a shareholder vote to reinstate a US$56 billion pay package, just days after the company announced it would be laying off 14,000 employees, or 14% of its workforce. The shareholder vote will be held at the AGM on June 13, 2024.
This is the same US$56 billion pay package in the form of Tesla share options that was voided by a court back in January 2024. The court decided Elon Musk’s Tesla compensation plan from 2018 was not developed in a fair process due to his significant influence over Tesla and the directors involved in the plan’s approval. Delaware judge Kathaleen McCormick ruled that rescission is an appropriate remedy.
Musk’s US$56 billion compensation plan was the largest package ever developed in the history of public companies and involved 12 tranches of Tesla stock options, which would vest if the company’s market capitalization increased by $50 billion and Tesla achieved a revenue target.
In the case, it was decided that the people who negotiated the CEO’s pay package on Tesla’s behalf were under the influence of the CEO. So even though shareholders voted in favour of the compensation plan, we have no idea if they could have been voting for a less generous plan.
Musk previously expressed concerns about not having at least 25% shareholding in Tesla. He says its not about the money, but 25% is necessary for influence on the direction that the company takes. He implied a preference to work on projects outside of Tesla if he cannot have 25%.
He added that owning the current 13% shares is not enough motivation to “show up for work”, referencing other shareholders like Fidelity who currently own a similar amount of shares but are not expected to work.
The US$56 billion pay package can be restored by voting for it again, this time ensuring the holes that allowed the court judgement to happen are plugged.
In addition to voting for the pay package, shareholders will also be asked to approve reincorporating the company in Texas. The rationale for this is that Delaware courts did not respect Tesla shareholders will by reversing the pay package which shareholders had previously approved. Texas was chosen as Tesla currently already has its physical headquarters and a gigafactory in Texas.
You can read more about the vote at supportteslavalue.com
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fire some of the useless sales staff in your malaysian showrooms first
Say no money to keep 14,000 workers working but suddenly got $56Billion to give an already billionaire. Err wha?
Mr. Musk is big investor in indon. So no problem
Musky boy got salty that he lost the no. 1 wealthiest spot, so Tesla employees now must sacrifice themselves for Overlord Elon
Haha well-said
It proves women
Stronger spending
Than men in combine
Don’t see where women even plays a part in this but you go off girl
what a weird name for the website?
support tesla value?
1) giving elon is ridiculously bloated pay would actually devalue everyone elses shares
2) elon has done more to damage tesla value over the last 2-3 years than provide value
3) no clawbacks if market dont stay up? based on current market cap how many targets got undone?
wake up shareholders.. eject musk, let him play with his rockets
Funny thing is SpaceX engineers said they can get more things done when Elon divert his attention to Tesla and trolling on Twitt…sorry, X. Musky boy is well known to make last minute changes on a whim and expect his employees to still adhere to the ridiculously optimisitic timeline he set after said changes.
Eh so? Welcome to the Msian bosses way of doing things.
Calm down Musky fanboy. He won’t even look at you even if you defend him to death
Tesla has to thank Musk for the useless truck instead of the Model 2. He let the Chinese take over the entry level EV segment when Tesla already a good head start.
Wow… You’re exactly like the western politician. King of finger-pointing.
The American way: Big boss fire his hardworking dedicated loyal workers so that the big boss can earn more money to buy his 3rd yacht. Then big boss screws up and the workers have to cover for him. Rinse and repeat.
fire staffs to save cost but the cost saved is channeled to Elon.
He’s holding the steering. Dare you not paying him enough.