Tesla’s (TSLA) board is reportedly exploring a brand new CEO pay deal for Elon Musk, who may not get again his $55 billion 2018 compensation package deal.
In response to a brand new Monetary Instances report, Tesla’s board created a brand new “particular committee” to discover a brand new CEO pay package deal for Musk.
The report factors to the committee new inventory choices and “alternative routes” to compensate Musk if Tesla fails to reinstate his 2018 compensation package deal, which was rescinded by a choose who discovered that Musk negotiated the cope with a board below his management after which misrepresented it to shareholders.
Musk is Tesla’s largest shareholder and due to this fact, he stands to learn probably the most when the corporate does nicely. Nonetheless, he doesn’t take a wage for his position as CEO.
Traditionally, He has obtained inventory compensation packages, with the one secured in 2018 being the controversial one presently below competition.
Since then, no new CEO compensation package deal has been permitted, and Tesla has not advised one other one because it tried to attraction the choose’s choice on the 2018 package deal.
The corporate is presently attacking the choice on two fronts with an attraction to the Delaware Supreme Courtroom and a brand new laws in Delaware to attempt to circumvent the choice altogether.
FT reporting that the board is engaged on a brand new compensation package deal with backpay might level to Tesla anticipating not having the ability to reinstate the unique compensation package deal.
Robyn Denholm and Kathleen Wilson-Thompson are the board members reportedly on the brand new committee.
Denholm took over from Musk as Tesla’s chair, and she or he has not too long ago made headlines for promoting her Tesla inventory choices for greater than $530 million over the previous couple of years.
Electrek’s Take
It more and more seems to be like Tesla gained’t be capable to distance itself from Musk and separate its destiny from his.
Musk has masterfully satisfied Tesla shareholders that the destruction of its core enterprise, promoting electrical autos, doesn’t matter as a result of the corporate is on the verge of fixing self-driving – one thing he has claimed yearly for the final 6 years and has been incorrect each time.
Now that they don’t care about EVs, there’s no level in blaming Musk for killing demand and delivering a single new car in 5 years, the Cybertruck, a business flop.
Subsequently, the one factor that may make Tesla shareholders cease wanting Musk as CEO is that if they cease believing his self-driving and humanoid robotic claims.
