Elon Musk's $ 1 Trillion Tesla Payment Plan Sparks Investor -Return -3 Reasons Why

Tesla shareholders are requested to oppose a $ 1 trillion wage proposal for CEO Elon Musk, citing concerns about the impartiality of the board and the divided attention of Musk due to its multiple roles. Here are the most important factors that are the letter highlights: Lying photo of Elon Musk, CEO of Tesla, at the Tesla Gigafactory in Nevada, USA. EV -maker shareholders voiced opposition to the proposed $ 1 trillion pay package for the world’s richest man. (Reuters / James Glover II) Tesla investors, including civil servants, opposed the proposed $ 1 trillion pay package of $ 1 trillion for Elon Musk in a letter sent last week, Forbes reports. Shareholders sent the letter on October 2, requesting other investors to reject the payment package at Tesla’s annual shareholders’ meeting on November 6, according to the report. Furthermore, the letter accused the board of “harming Tesla’s reputation” in their struggle to retain Elon Musk. Who signed the letter? Forbes reported that the letter was signed by prominent investors, including the SOC Investment Group, and the US Federation of Teachers; The state treasurers of Nevada, New Mexico, Connecticut, Massachusetts, Colorado and the Controllers of Maryland and New York. Tesla -Opposition letter: Top 5 emphasizes investors who express a low belief in the impartiality of the board: In the letter, signatories have no confidence in the impartiality of the council, in respect of Elon Musk. They claimed that Tesla’s board of directors consisted of directors with close ties with the CEO ‘and that the proposed payment packages’ offer so much discretion to Tesla’s board that shareholders cannot be confident in impartial treatment.’ The letter noted that Tesla’s “negative and very volatile” performance has criticized the board’s ability over the past year to “provide objective, strict supervision of management.” “We believe that these relationships have enabled a culture where the board fails to challenge Mr Musk, even if his actions are detrimental to the company’s value and its public shareholders,” they claim. Elon Musk’s government role that causes issues: The letter also accused the board of ensuring that he failed to ensure that Elon Musk devoted his ‘full attention’ to Tesla. It was a Jibe in the richest man’s richest man in American politics. As part of the Trump administration, he performed the Department of Government Efficiency (Doge) -a command that the Elon Musk -related brands, especially Tesla, traced. “The board allowed Mr Musk to become too much committed for years, which enabled him to continue as CEO while taking time -consuming leadership roles with its other businesses, Xai/X, SpaceX, Neuralink and boring company. The most recently, the board apparently failed to intervene when Mr. A negative impact on the company’s performance and brand has, ‘The note said. Now, despite these distractions, Tesla proposes to reward Musk, currently one of the richest men in the world, with another unprecedented payment package. We have a long contradiction of Musk’s excessive compensation proposals, and this package keeps the disturbing pattern of priorizing the interests of the other Tesla shareholder, “(formerly Twitter). “The Tesla Special Committee has designed a performance incentive plan that completely aligns the remuneration of Elon and the value creation of shareholders. If Elon Musk does not produce results, he receives nothing. We are talking about trillions of dollars’ value for shareholders + efforts that will accelerate global wealth. Under Elon’s leadership, Tesla reached an annual return of 49%. argue that Elon’s leadership and the management of the Tesla board were not yet effective, ‘the car manufacturer said. What was the council proposal? Tesla board in its submission to the US Securities and Exchange Commission (SEC) proposed an additional 12 percent stake in the company for Elon Musk last month. It is set in 12 tranches over the next ten years, subject to the completion of specific goals. To pay the full $ 1 trillion wage, Elon Musk will need the market cap of Tesla from $ 1.37 trillion to $ 8.5 trillion over the next ten years rocket, it says. On October 2, Elon Musk became the first person in history to reach a net worth of $ 500 billion, according to Forbes Real-time billionaires. According to a Reuters report in which Forbes is quoting real-time billionaires, Elon Musk had a net worth of $ 500.1 billion from 16:15 ET. It is closely linked to his stake in Tesla, where he owns more than 12.4 percent shares from mid -September. (With input of agencies)