Elon Musk hopes for an astronomical compensation plan: Tesla shareholders will decide whether the businessman receives $1 trillion
Kyiv • UNN
Tesla shareholders will vote on November 6 on an unprecedented $1 trillion compensation package for Elon Musk. Consulting firm ISS advises rejecting the plan, citing "serious concerns about its scale and structure."
The largest compensation plan ever proposed for a company executive could be approved on November 6. Currently, an influential consulting firm advises Tesla shareholders to reject the approval of the astronomical sum.
UNN reports with reference to Le Figaro.
Details
Tesla shares have risen by 30% in the last three months, and by approximately 80% year-on-year. Amidst this growth, the company's CEO, Elon Musk, is expecting a compensation package of $1 trillion. The remuneration is calculated for 10 years and was announced by Tesla's board of directors.
This unprecedented plan still needs to be approved. This will depend on the results of the vote on November 6 at Tesla's annual general meeting.
Not everyone agrees - there are those who warn against the consequences of adopting Elon Musk's astronomical compensation plan.
Institutional Shareholder Services (ISS), which is highly respected by large institutional investors, points to "serious concerns about the scale and structure" of the automaker's CEO compensation plan.
The "astronomical" remuneration is unacceptable, the company's report states.
(The ten-year plan proposed by Tesla's board of directors in early September) has an astronomical value and depends on achieving ambitious targets which, if met, will create enormous value for shareholders
Elon Musk, already the richest person in the world, will have to achieve incredibly high performance to justify the proposed compensation. Tesla must surpass Nvidia, which is the most expensive company in the world with $4.5 trillion. The automaker's market capitalization must increase from approximately $1.4 trillion (which it is today) to $8.5 trillion.
Recall
Hundreds of Tesla Cybertrucks have been spotted being delivered to Elon Musk's private companies, SpaceX and xAI, as Tesla struggles to sell the electric pickup truck.