The names of the electric vehicle company Tesla and its CEO Elon Musk are strongly associated with each other. If Tesla is mentioned, the name of Elon Musk automatically comes to the fore. However, now clouds of risk are looming over this deep relationship. It is possible that Elon Musk may leave the company in the coming days and separate himself from Tesla.
In such a situation, he will leave the company
Tesla’s chairperson Robin Denholm has issued a warning about Elon Musk leaving the company. Before the company’s shareholders meeting this week, Denholm has said that if Elon Musk’s proposed pay package is not approved, then in such a situation he may separate from the company. The Tesla chairperson has written a letter to the shareholders in this regard.
The package is stuck since 2018
This entire controversy is about Elon Musk’s package in Tesla. Elon Musk has been demanding a special package for himself. The management has prepared a proposal for a huge package of $ 56 billion for him. However, this proposal has been stuck for many years. The proposal was prepared in 2018 itself, but it has not been approved yet.
Some shareholders opposed
An important meeting of Tesla shareholders is going to be held on June 13 this week. In that meeting, Tesla shareholders will vote on CEO Elon Musk’s pay package. The company’s management is trying to get the package proposal approved by the shareholders. On the other hand, a group of some shareholders is opposing the package. A group led by New York City Comptroller Brad Lander, SOC Investment Group and Amalgamated Bank wrote a letter last month addressed to all the investors (shareholders) of the company, appealing to vote against the proposed pay package of billions of dollars of Tesla CEO.
Tesla’s chairperson gave this argument
Denholm has earlier also appealed to the shareholders to vote on Elon Musk’s pay package. He says that Elon Musk is Tesla’s most important employee and yet he has not received any remuneration for his work for 6 years. Denholm says in the letter – neither Tesla is a normal company nor Musk is a normal employee. For this reason, the package that Musk gets in exchange for working in Tesla cannot be thought of as per normal companies.
Elon Musk has made this demand
Elon Musk currently has about 13 percent stake in Tesla. Elon Musk has demanded to increase his stake in Tesla to at least 25 percent. He has also warned the company that if he does not get at least 25 percent stake, then instead of giving time to the EV company, he can shift focus to AI, robotics etc.
Discussion about this post