On Thursday, Tesla shareholders are to make a fateful decision: approve Elon Musk's compensation package of up to $878 billion or risk losing the man the board of directors calls "irreplaceable." This vote could be the loudest test of corporate governance in the world – a test of whether the usual rules apply to the richest man on the planet. This is stated in the Reuters material, writes UNN.
Details
Tesla's board of directors urges investors to "pay Musk – or lose him." In their opinion, he is the key to transforming the company from an electric car manufacturer into an artificial intelligence technology giant capable of producing robotaxis and humanoid robots on an industrial scale.
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If Musk achieves the goals set by the board over the next decade, Tesla's market capitalization could grow to $8.5 trillion, and Musk himself would own approximately 25% of the company's shares. Even with partial implementation of the plan, he will receive tens of billions of dollars – the largest reward in business history.
Split among investors
For some investors, this is a justified bet on a brilliant entrepreneur.
If the stock goes up sixfold – and that's a prerequisite here – then I'll make a lot of money. Why do I care how much he gets if he's delivering on the vision?
However, others warn: such a package undermines the very idea of responsible governance.
Experts in corporate ethics believe that the board of directors is effectively handing over control of Tesla to one person, ignoring conflicts of interest and the need for leadership succession. The company must remain open to the talent market, and not be limited to one CEO, even if it is Elon Musk
Musk himself did not comment on the situation, and a spokesman for Tesla's board of directors also declined to make any statements. Meanwhile, investors are preparing for one of the most important votes in the company's history, the outcome of which will determine not only Musk's fate, but also the direction of Tesla's development in the next decade.
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