Could Elon Musk, the iconic CEO of Tesla, leave the company he helped make known around the world? In any case, this is what Robyn Denholm, the chairman of the company’s board of directors, suggests, who calls on shareholders to approve the billionaire’s enormous remuneration.
On June 13, Tesla shareholders will have to decide a thorny question: whether or not to grant Elon Musk, the billionaire CEO of the American group, compensation of $56 billion for past achievements.
A vote which could have major consequences on the future of the car manufacturer, and which raises numerous ethical and financial questions.
Record remuneration for past achievements: an unusual choice
First of all, it should be noted that this amount of $56 billion, the largest in history for a leader, was put in place in 2018, but canceled in January by a Delaware judge.
The unusual nature of this new vote is that it asks shareholders to pay Elon Musk for work already accomplished, rather than for future performance. Traditionally, CEOs are compensated for what they are expected to accomplish, not for past accomplishments.
So why this unusual choice? According to Robyn Denholm, the chairman of the board of directors of Tesla, this is to ensure that the billionaire CEO remains within the company, and continues to contribute his ideas and his energy. “ What we recognized in 2018 and continue to recognize today is that one thing Elon definitely doesn’t have is unlimited time “, she said.
“ Nor does he face a shortage of ideas and other places where he can make an incredible difference in the world. We want these ideas, this energy and this time to be at Tesla, for the benefit of you, our owners. But this requires mutual respect. “.
Elon Musk, a CEO with many hats
This declaration of Robyn Denholm hints that Elon Musk could camp in “ other places » without proper motivation.
And it must be admitted that the CEO of Tesla actually has many other hats, which could distance him from the company he helped to make known throughout the world.
In addition to Tesla, Elon Musk is, in fact, the founder and CEO of SpaceX, specializing in space travel. He is also the co-founder of Neuralink, a company that works on creating brain-machine interfaces, and The Boring Company, a tunnel construction company. Not to mention that he acquired Twitter, renamed X, the famous social network, for the modest sum of 44 billion dollars.
So many different projects which necessarily distract Elon Musk’s attention from Tesla, which is nevertheless the main Source of his wealth and popularity.
Hence the fear of many investors about his future within the company, and the need for the company to ensure that he remains in place.
A crucial vote for the future of Tesla
This vote of June 13 is therefore a real test for Tesla shareholders. On the one hand, there are those who support Elon Musk wholeheartedly, fully behind his vision for the company. For them, Elon Musk deserves this compensation for making Tesla what it is today. On the other hand, there are those who want to protect their investments and demand better financial management.
A study by trading platform eToro last month showed that about 25% of Tesla shares have already voted, said Reuters. Of these, more than 80% were in favor of compensation for Elon Musk.
It remains to be seen whether this trend will be confirmed during the final vote, and whether Tesla shareholders will be ready to pay $56 billion to ensure that their billionaire CEO remains in place.
One thing is certain: the future of the company, and perhaps even that of the automobile industry as a whole, could well be at stake during this historic vote.
