Tesla is preparing for its annual general meeting (AGM) in Austin, Texas, where the discussion will center on Elon Musk’s proposed compensation package, which could value him at $1 trillion. Tesla has actively promoted this package through digital ads and a specific video on Votetesla.com featuring board chair Robyn Denholm and director Kathleen Wilson-Thompson advocating for Musk’s leadership. The company’s push for support comes amid growing concerns about Musk’s polarizing reputation, particularly following political shifts that have influenced public perception.
Musk has used his platform on X, the social media site he owns, to emphasize the importance of the vote, claiming the future of Tesla may impact civilization. He has also highlighted endorsements from notable supporters, including Dell Technologies’ Michael Dell and Ark Invest CEO Cathie Wood. However, there are dissenting opinions about Musk’s leadership and the company’s direction, especially as Tesla faces declining sales. Critics like Ross Gerber, a wealth management CEO, question Tesla’s choice to spend resources on marketing Musk’s compensation rather than focusing on vehicle sales.
The compensation deal does not promise a sweeping salary but links Musk’s payment to increasing Tesla’s market value from $1.4 trillion to $8.5 trillion and successfully launching a fleet of autonomous “Robotaxi” vehicles. If accomplished, Musk could receive 423.7 million new shares, potentially worth nearly $1 trillion.
As the AGM approaches, various stakeholders, including proxy advisers and significant institutional investors, are urging rejection of the compensation package, arguing it may dilute shareholder value. Musk and his brother Kimbal, who is on the board, plan to vote in favor of it. The outcome of the vote could greatly impact Tesla’s governance and Musk’s future at the helm of the company.
Source: https://www.bbc.com/news/articles/cn4j0yg1drgo?at_medium=RSS&at_campaign=rss