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Why Tesla wants to give Elon Musk a $55 billion pay package
Why Tesla Proposes a $55 Billion Pay Package for Elon Musk
Tesla is seeking approval for a $55 billion pay package for Elon Musk after a Delaware Judge rejected it earlier this year. The board believes this is critical for Tesla’s future success and aims to restore stockholder democracy.
Quick Facts
- Tesla seeks approval for a $55 billion pay package for Elon Musk after it was struck down by a Delaware Judge.
- The board believes the package is critical to the future success of Tesla and aims to restore stockholder democracy.
- The pay package is designed to motivate Musk to drive growth at Tesla and is tied to the company’s financial targets.
Tesla’s board chair, Robyn Denholm, emphasized the importance of the pay package and the plan to move Tesla’s state of incorporation from Delaware to Texas. She argued that the package is essential for the future success of Tesla and is critical for restoring stockholder democracy.
Denholm highlighted that the pay package is designed to motivate Elon Musk to continue driving growth at Tesla and emphasized the fundamental fairness and respect to the CEO. The filing also noted that Musk’s compensation is tied to the company’s financial growth and stockholder value, with shares increasing nearly six times in value since 2018.
The package aims to further incentivize Musk to innovate and drive growth at Tesla, as it requires him to hold onto his shares for five years after exercising his options. The filing argues that the value of his shares will depend on driving growth at Tesla.
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