Does Elon Musk Deserve His $56 Billion Pay Package?

EV sales are growing slower, and Tesla’s market share is shrinking.

Luay Rahil
All Things Work

--

Image by Marcin Paśnicki from Pixabay

Tesla is seeking shareholders’ approval to reinstate a $56 billion pay package for CEO Elon Musk, which was previously rejected by a Delaware judge last January. Additionally, the company is looking to relocate its corporate headquarters to Texas.

Charles Elson, a respected figure in corporate governance, has not only expressed his disapproval of Elon Musk’s compensation package but also resigned from a long-standing consulting position. Elson’s stance echoes the opinions of multiple investors who are advocating for shareholders to reject what could potentially be the largest compensation plan in history and to vote against the reelection of directors Kimbal Musk and James Murdoch.

Investors want to hold Musk accountable.

Investors are raising concerns about the potential conflict of interest among Tesla’s board members, many of whom have close personal and financial ties to Elon Musk. This situation could potentially undermine the effectiveness of the company’s management.

The Delaware Court of Chancery cited similar reasons when it ruled that Elon Musk’s 2018 pay package breached fiduciary duty due to misleading…

--

--

Luay Rahil
All Things Work

I write engaging content on business and leadership development.