Tesla’s board is considering a revised CEO compensation package for Elon Musk, which might fall short of the $55 billion payout he received in 2018.
Following the release of a groundbreaking Monetary Times report, Tesla’s board has established a special committee to devise a comprehensive compensation package for Elon Musk.
The committee is set to review alternative inventory options and other potential compensatory measures for Elon Musk if Tesla is unable to reinstate its 2018 compensation package, which was previously rescinded by a judge who found that Musk had negotiated the deal with a board dominated by his own appointments before misrepresenting it to shareholders.
As Tesla’s largest shareholder, Musk has a vested interest in the company’s success, making his potential gains substantial should the corporation thrive. Notwithstanding this, he does not receive compensation for his role as Chief Executive Officer.
Historically, he has received inventory compensation deals, with a particularly contentious package secured in 2018 that remains under scrutiny due to ongoing rivalries.
Since then, there have been no new CEO compensation packages approved, with Tesla not pursuing another since attempting to overturn the court’s decision on its 2018 package.
The corporation is launching a dual-pronged attack against the ruling, simultaneously pursuing an appeal before the Delaware Supreme Court and introducing new legislation in Delaware aimed at sidestepping the decision altogether?
Tesla may be forced to abandon its original compensation plan if the board approves a new package deal with backpay, according to FT reports.
Robyn Denholm and Kathleen Wilson-Thompson are allegedly part of the newly formed committee’s membership roster.
Robyn Denholm succeeded Elon Musk as Tesla’s chairperson and has recently generated significant attention by realizing more than $530 million in gains from her Tesla stock options over the past few years.
Electrek’s Take
As Elon Musk’s personal vision becomes increasingly intertwined with Tesla’s trajectory, it appears unlikely that the electric car manufacturer can fully detach itself from his influence and forge a distinct path ahead.
Despite Musk’s repeated assurances to the contrary, he has successfully reassured Tesla shareholders that the company’s core business of producing electric vehicles is not at risk due to its pursuit of autonomous driving technology.
Despite a lack of interest in electric vehicles (EVs), blame can hardly be placed on Elon Musk for stifling demand, given his recent delivery of the innovative Cybertruck, a singular achievement in just five years, albeit an industrial anomaly.
If Tesla shareholders are to lose faith in Elon Musk’s leadership, it will likely be due to doubts about his ambitious claims regarding self-driving and humanoid robotics.
