Elon Musk was face Tesla has spent two many years as an investor and CEO – but if shareholders don’t approve his multibillion-dollar compensation package next week, every thing could change.
Robyn Denholm, Tesla’s board chairwoman, sent shareholders a letter on Wednesday, urging them to approve Musk’s proposed $56 billion salary at the company’s June 13 annual meeting.
The pay package that it might probably be highest in the history of American corporations, “of course it wasn’t about money,” Denholm wrote.
Instead, Denholm framed the issue as a strategy to encourage Musk to proceed focusing on Tesla.
“If Tesla is to keep Elon’s attention and motivate him to continue to devote his time, energy, ambition and vision to ensure comparable results in the future, we must honor our agreement,” Denholm wrote.
Tesla CEO Elon Musk. Photo: Christian Marquardt – Pool/Getty Images
Musk’s compensation package was approved by shareholders for the first time 2018 and was based on Musk leading Tesla to attain a variety of key revenue, market capitalization and operational achievements.
One goal, for example, was to extend Tesla’s market capitalization by almost $600 billion.
Musk met his goals and was eligible to receive the award earlier this yr, but there was a legal issue. A judge from Delaware overturned pay package in January, calling it an “unfathomable sum” and wrote that “the proxy statement incorrectly described key executives as independent and erroneously omitted details of the process.”
Now Tesla is attempting to move its legal headquarters from Delaware to Texas and is asking shareholders to re-approve Musk’s salary.
Both issues will probably be voted on at Tesla’s annual meeting.
The suggested pay would put Musk well ahead of other CEOs. Monday test The Associated Press found that the highest-paid CEO of the S&P 500 public exchange last yr was Broadcom’s Hock E. Tan.
Tan’s compensation last yr, including base salary, bonuses and stock awards, was price about $162 million.
Apple CEO Tim Cook was third on the list with total compensation of $63 million, and Netflix CEO Theodore A. Sarandos was fifth, earning nearly $50 million.
Musk also owns X, formerly Twitter, and runs SpaceX, Neuralink and the Boring Company.