Tesla is preparing for the annual shareholder meeting, and what surprised the market was that the vote on Musk's high salary plan was ultimately linked to Musk's job change at Tesla.
According to regulatory documents submitted on Thursday, Tesla Chairman Robyn Denholm stated in a letter to shareholders that if Tesla shareholders wish to continue incentivizing Musk to work for Tesla, it will be crucial to re approve the promised high compensation package of 56 billion in 2018.
This means that if Tesla shareholders ultimately refuse the high compensation reward for Musk, Musk may leave Tesla.
Denholm added that Musk is already one of the wealthiest people in the world, and the importance of this deal is not money. Motivating people like Musk requires something different, which is also one of the main reasons why Tesla's board of directors previously decided to reward Musk for holding his acquired shares for five years after exercising the option, which can motivate him to continue creating value for Tesla.
On June 13th, Tesla shareholders will ultimately vote on the fate of Musk's compensation plan, which is currently worth approximately $46 billion.
Critical Fate
Denholm's suggestion to some extent also confirms the concerns of many Tesla shareholders. Due to Musk's involvement in multiple projects simultaneously, in addition to Tesla's electric vehicle, SpaceX's flagship, Neuralink's brain computer, social platform X, and artificial intelligence xAI, many Tesla shareholders are concerned that Musk may not be able to focus on Tesla's leadership.
This multi line management model is the fundamental reason why some Tesla shareholders are dissatisfied with Musk, and indirectly sparked discussions among shareholders that Musk should not receive the highest salary package in history.
As of now, several Tesla institutional shareholders have advised against approving Musk's compensation plan. But according to a report from trading platform eToro last month, about 25% of Tesla shareholders have already voted, with 80% supporting the promised massive compensation to Musk.
The salary package is just one of the rounds in the tug of war between Mask and Tesla's shareholders. Previously, Mask also said that he would seek to hold 25% of Tesla's control rights to achieve the goal of developing artificial intelligence and autonomous vehicle. He also threatened to split Tesla's artificial intelligence work into independent companies if the requirements were not met.
Denholm earnestly advised that Musk is most lacking in time, but not in ideas and the ability to influence the world. Tesla's board of directors hopes to keep Musk for the benefit of shareholders, which requires mutual respect.