Disagreement over Elon Musk's salary at Tesla

Disagreement over Elon Musk's salary at Tesla

How much should he get? Tesla CEO Elon Musk during a shareholder meeting in 2023.

Strong resistance:

A consulting firm is asking shareholders to vote against what could be an all-time record payout.

It's consulting firm Glass Lewis that offered very clear advice: Say no to Elon Musk's salary agreement — or “compensation,” as it's often called.

Musk's deal was concluded in 2018. In short, this meant that the Tesla owner would receive 304 million shares at $23.24 apiece, if Tesla's total value increased to $650 billion over ten years. Read more about the agreement here.

A run in court ended in January, with a judge putting his foot down, calling Tesla to a new vote among shareholders.

Read more about Tesla cases here:

Too much time on X?

Glass Lewis writes that this vote is what he cares about Reuters. Advisors cite the following reasons why shareholders should vote “no” to give Musk about $55 billion – in this case the amount paid at all:

● Same size. They simply think the amount is too high.

● Signaling effect – what this push can lead to later.

● Concentration of ownership, too much power for one person.

● Musk's many irons in the fire, with the X Network service in particular being highlighted. In plain words, this means that advisors don't think Musk is spending enough time on Tesla's business operations.

Shareholders do not have all the power

according to Financial Times Big Tesla investors like Vanguard, Norges Bank, and Capital Group love listening to Glass Lewis.

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The newspaper also wrote that Yes is a shareholder no It means that Musk's agreement has finally been approved.

The January ruling remains under the law, but the vote will serve as argument when the case moves forward in the legal system.

Meanwhile, many of Musk's supporters are resorting to scare tactics, he writes Electric. The gist here is often the half-disguised threats that the new artificial intelligence company xAI might be pulled from Tesla's field, if the president can't get past them.

● Glass Lewis also recommends that shareholders vote against Tesla's announced move to Texas, and that Elon Musk's brother, Kimbal, should be allowed to continue as a board member.

Hundreds of billions:

Musk is fighting for the highest salary ever

Hanisi Anenih

Hanisi Anenih

"Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst."

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