Last January, the American justice system annulled the remuneration of 56 billion dollars in favor of Elon Musk voted by the board of directors of Tesla in 2018. The court in fact estimated that during this vote approved in a general meeting , shareholders received information “misleading” And “wrong”.
Elon Musk needs respect (and $56 billion)
Regardless, Robyn Denholm, Chairman of the Board of Directors of Tesla, is asking shareholders to once again approve this $56 billion compensation. In a letter, she pleaded in his favor:
Elon is no ordinary executive, and Tesla is no ordinary company. So the usual way companies compensate their top executives won’t get Tesla results. Motivating someone like Elon takes something different.
And if that wasn’t enough to convince them, the manager is more specific. The billionaire could well look elsewhere:
What we recognized in 2018 and continue to recognize today is that one thing Elon definitely does not have is unlimited time. 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 devoted to Tesla, for the benefit of you, our owners. But this requires mutual respect.
A respect which amounts to 56 billion dollars. But this is not, according to her, “not a question of money”. In this regard, she emphasizes: “We all know that Elon is one of the richest people on the planet, and he would remain so even if Tesla reversed the commitment we made in 2018.”
Final decision on June 13
Clearly, the billionaire would need this proof of love which amounts to several tens of billions of dollars, not for his personal fortune, but for his ego. This argument, which is largely debatable, seems in any case to hit the mark if we are to believe our colleagues at The Verge.
The first surveys carried out by the eToro exchange platform suggest that shareholders are rather favorable to this remuneration plan. The final vote will take place on Thursday June 13. To find out more about the reasons for the cancellation of this compensation plan decided by the courts, you can always reread our article here.
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