Elon Musk, the enigmatic multibillionaire, holds a significant worth to Tesla, the automotive company he leads. In 2018, the company’s board established a plan to grant Mr. Musk shares over a period of ten years, valued at $46 billion based on their current price, subject to the achievement of certain milestones. A recent legal ruling in Delaware invalidated the package, labeling it as “unfathomable”, following a lawsuit from a shareholder seeking its annulment. Ahead of the upcoming annual general meeting on June 13th, Tesla is seeking confirmation of investor support for the award.
Mr. Musk’s extravagant compensation package dwarfs that of other top American CEOs, including Hock Tan of Broadcom, who earned significantly less last year. The package is also equivalent to a substantial 8% of Tesla’s current market value, which has experienced a decline of about twenty percent in the past year. The company’s plea for investor endorsement of the award highlights the controversy surrounding Mr. Musk’s compensation and its potential implications on Tesla’s future.