Elon Musk is one of the great entrepreneurs of the century, but even he isn’t worth the biggest pay packet in history.
Tesla’s shareholders will be offered a free tour of a Tesla factory, perhaps a blue tick on X, the site formerly known as Twitter, or even a trip in one of his space rockets.
It is shaping up into an epic contest, with shareholders lining up on both sides of the issue. Musk’s massive payout for driving the Tesla share price up, first agreed in 2018, was overturned by a judge in Delaware, where the company is incorporated, who ruled that the company’s boss had put too much pressure on a largely supine board to agree to the deal.
With the blunt language that is so often characteristic of the Musk team, Robyn Denholm, Tesla’s chairman, has dismissed criticism of the package as “crap” and “total BS”, while Musk himself has started dropping heavy hints that he would rather go off and concentrate on his other businesses if he doesn’t get the rewards he feels he is entitled to for running Tesla.In fairness, if anyone is worth a pay package of that size it is probably Musk. Tesla’s share price rose from $US1.
The takeover of Twitter has consumed vast amounts of his time and energy. His SpaceX rocket business has become bigger, but it is also taking up more of his time. He has just raised $US6 billion for his artificial intelligence start-up xAI, and presumably that will take up a few hours a month as well.
Next, it diverts too much money away from shareholders. In fairness, Musk does not draw a salary, but the shares he will be awarded under the proposed plan will dramatically increase his stake in the business. That comes at the expense of the existing shareholders who, obviously enough, will end up owning far less. That hardly seems fair.
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