The head of Tesla warned shareholders that Elon Musk could leave the company if he is not paid a huge compensation of $56 billion and his stake in the company is not increased.
Shareholder dispute
Elon Musk's motivation
Tesla Chairman Robin Denholm called on shareholders to approve an unprecedented compensation package for Elon Musk in the amount of $56 billion. Denholm argues that Musk needs special motivation because he is an "atypical leader" and Tesla is an "atypical company." According to her, the usual way of remunerating top managers is not suitable for stimulating a person like Musk.
Tesla management fears that without proper motivation, Musk may focus his attention on other projects such as SpaceX, The Boring Company, Neuralink, X and xAI, which distract him from Tesla - the main source of his wealth and popularity.
Musk's desire to increase his stake in Tesla
In addition to his huge compensation package, Musk is seeking to gain more control over Tesla by increasing his stake in the company to 25%. He currently owns about 13% of the shares after selling some of his shares to finance the purchase of Twitter.
Musk even threatened to spin off Tesla's AI division into a separate company if his demands weren't met.
Shareholder Resolution
Preliminary shareholder vote results indicate Musk is likely to get what he wants. About 25% of shareholders have already voted, and more than 80% of them supported the compensation package.
The final decision on this issue will be made at the Tesla shareholder meeting on June 13.
Glossary
- Tesla - American company, manufacturer of electric vehicles and energy products
- Elon Musk - entrepreneur , engineer and billionaire, founder of Tesla, SpaceX and other companies
- SpaceX is an American aerospace company founded by Elon Musk
- The Boring Company is a company founded by Elon Musk for tunnel construction
- Neuralink - a company developing implantable brain-computer interfaces
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Answers to questions
Why is Tesla's chairman calling on shareholders to approve Elon Musk's $56 billion payout?
What arguments does Robin Denholm give to justify the need to pay Elon Musk?
How is the shareholder vote on the compensation package for Elon Musk going?
What other goals does Elon Musk have for Tesla?
What other projects could Elon Musk be diverting his attention away from Tesla?
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Discussion of the topic – Tesla plans to pay Elon Musk $56 billion for motivation and innovation
Tesla shareholders must decide whether to approve a record $56 billion payout to CEO Elon Musk as an incentive for further innovation and growth at the company.
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Ольга
Wow, that sounds fantastic! Elon Musk is truly a unique leader and spends enormous effort on innovative projects. 💯 Although, given his constant distractions with other companies like Twitter, such motivation in the form of compensation may be reasonable. The main thing is that it contributes to the further growth of Tesla.
Михаил
56 billion?! 😲 Yes, this is crazy money! Is he really that good of a leader? It seems to me that such compensation is not necessary - he is already making a huge profit from his shares in Tesla. Instead, it would be better to invest in the development of the company.
Эдуард
To be honest, I am also surprised by such a huge amount of compensation. 😳 But, on the other hand, it was thanks to Musk that Tesla became a leading company in the field of electric vehicles. He put his ideas, energy and determination into it. So perhaps this reward is justified to keep him motivated to further develop Tesla.
Григорий
Who would doubt that the rich have regained their appetite! 💰 These billions could be spent much more usefully than paying overcompensation. For example, develop a network of charging stations for electric vehicles or subsidize their sales for wider distribution of environmentally friendly transport.
Джейн
Yes, the amounts are impressive! 🤑 But all these hundreds of billions were earned thanks to Musk’s revolutionary ideas and his unique ability to bring them to life. So, perhaps, such a reward is quite fair. The main thing is that he continues to develop Tesla, and not be scattered on other projects.
Зигмунд
Ah, these cheerful billionaires! 🧐 Glad that at least someone finds something funny in such compensation. When all around people are in need, and money is spent on yet another crazy idea of the rich. Tesla is no longer the dream company it once was. All these trends and innovations are for the elite.
София
I think even for a person with Elon Musk’s fortune, such an award will serve as good motivation! 💰 He puts so much effort into the development of advanced technologies in Tesla, SpaceX and his other companies. It would be a shame if he lost interest in Tesla due to being scattered among other projects.
Анджей
Inconceivable numbers! 🤯 But, probably, in the world of high technology and innovation, such incentives are required for geniuses like Musk. Otherwise, he really might get carried away with something else, and the world will be left without Tesla’s breakthrough developments in the field of electric vehicles and energy.