Tesla plans to ask its shareholders to reinstate a $56 billion payment plan for CEO Elon Musk. A judge in Delaware didn’t approve this plan earlier this year. Tesla also wants to change its official location from Delaware to Texas. They will ask shareholders to vote on these changes during the annual meeting on June 13.
In January, a judge in Delaware said that Elon Musk couldn’t have the big payment plan that Tesla’s board of directors offered him. This payment plan could have been worth about $55.8 billion over 10 years. The judge said Musk had too much influence on the decision.
Musk had said earlier that he wanted to move Tesla’s headquarters from California to Texas. He already moved another company he owns, Neuralink, from Delaware to Nevada.
Tesla’s Chairperson, Robyn Denholm, wrote a letter to shareholders. She said that Musk has done well for Tesla. He met all the targets set by shareholders back in 2018. Denholm thinks it’s not fair that Musk hasn’t been paid for his work because of the court’s decision.
Tesla plans to ask its shareholders to reinstate a $56 billion payment plan for CEO Elon Musk
Last year, Tesla sold a record number of electric vehicles worldwide. But this year, their shares have lost value, and fewer people are buying electric cars. Shareholders will also vote on future pay packages for Tesla executives, but this vote won’t be binding.
Tesla has been cutting prices on its cars, sometimes by as much as $20,000. This has caused Tesla’s profits to decrease, and they recently announced they were laying off about 10% of their workforce.
Tesla’s board says they’ll listen to shareholders’ concerns about executive pay. If many shareholders vote against the pay packages, they’ll reconsider their plans.
Tesla’s shares have gone down 8% this week and are slightly lower in trading today.
