canada africa partner reservation Tesla CEO demands $56 billion for Musk because ‘Elon needs motivation’

Tesla CEO demands $56 billion for Musk because ‘Elon needs motivation’

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Tesla CEO Robin Denholm is calling on the company’s shareholders to approve a $56 billion payout to Elon Musk. On June 13, Tesla shareholders will decide the fate of the compensation package.

This will be the second time shareholders will vote on Musk’s compensation, after a Delaware judge vacated their first decision. earlier this year because the approval process was “deeply flawed.” Now the company is trying to convince shareholders to approve the proposal a second time.

“Elon is not a typical CEO, and Tesla is not a typical company. So the typical way companies reward key executives won’t work for Tesla. To motivate someone like Elon you need something different,” Denholm wrote in a letter to shareholders filed with the U.S. Securities and Exchange Commission.

Denholm hints that Musk could have gone to “other places” without proper motivation:

“What we recognized in 2018 and continue to recognize today is that Elon certainly does not have unlimited time. He also has no shortage of ideas and other places where he can make an incredible difference in the world. We want those ideas, that energy and that time to be spent at Tesla for the benefit of you, our owners. But that requires mutual respect.”

Denholm’s claim that Musk needs motivation indicates that the board fears the billionaire’s stay at the company. SpaceX, The Boring Company, Neuralink, X and xAI are diverting Musk’s attention from Tesla, the main source of his wealth and popularity.

“We all made a promise to Elon. Elon has delivered on its promises and created tremendous value for our shareholders. By reaffirming our commitment to Elon, we show our support for his vision for Tesla and recognize his extraordinary achievements. This is what will motivate him to continue creating value for shareholders.”

Early sentiment suggests Elon Musk might get what he wants. A report from the eToro trading platform last month showed that holders of about 25% of Tesla shares have already voted. Of these, more than 80% were in favor of the compensation package.

Musk is also trying to gain more control over Tesla in the form of a 25% stake. He currently owns about 13% of the company – after selling billions of dollars worth of stock to acquire Twitter. At the X, he expressed his intention to spin off Tesla’s artificial intelligence division into a separate company if his demands are not met.

Source: The Verge