Tesla kicks off its annual shareholder meeting on Thursday — and Elon Musk’s $55 billion pay package is hanging in the balance.
Shareholders have been voting over the past few weeks on whether Tesla should reinstate Musk’s compensation plan, which was valued at $55 billion when it was struck down by a Delaware judge earlier this year.
Now, it’s almost time to see where the votes have fallen.
On Thursday, the electric carmaker is set to announce the results of the vote, which could have major ramifications for Tesla’s stock price and the future of the company.
Earlier in June, the chair of Tesla’s board, Robyn Denholm, warned that the company might lose Musk’s attention and fail to motivate the CEO if Tesla was unable to reinstate the pay package. Similarly, Musk has threatened to take his work with AI outside Tesla if he’s unable to secure additional voting shares.
The pay plan was first approved by shareholders in 2018. Musk’s compensation is determined by Tesla’s ability to hit a series of financial goalposts under his leadership, and it involves a 10-year grant of 12 tranches of stock options that are vested when Tesla hits specific targets. When the company passes each milestone, Musk receives stock equal to 1% of outstanding shares at the time of the grant. Tesla said it hit all 12 targets as of 2023.
Click this link for the original source of this article.
Author: Faith N
This content is courtesy of, and owned and copyrighted by, https://www.offthepress.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.