After months of campaigning to shareholders, Tesla’s board of directors is now required to decide on Elon Musk’s compensation package.
Tesla’s board is set to vote on Thursday on whether to support the company’s biggest bet in history: either pay Musk as much as $878 billion in stock or risk his departure, which could cause a drop in the company’s stock value.
Despite Musk’s recent negative press, the board and many investors believe that only Musk can deliver on his promises to make Tesla a major player in artificial intelligence, producing millions of self-driving robotaxis and humanoid robots.
If Musk reaches all of the board’s performance targets within ten years, Tesla’s market value will grow to $8.5 trillion, with Musk owning roughly a quarter of the company’s stock.
Tesla’s proposed pay package significantly exceeds any other CEO’s compensation in history. Experts believe this vote primarily functions as a referendum on whether traditional corporate governance principles should govern the wealth of the world’s richest individual.
Tesla shares dropped 3.8% in premarket trading ahead of tomorrow’s vote.
By CEO NA Editorial Staff
