Highest bonus ever for American top manager
A majority of Tesla shareholders have approved the mega reward worth 52.37 billion euros for CEO Elon Musk. This is the highest bonus ever for a director of an American company.
In 2018, shareholders also agreed to the mega bonus, which consists of stock options that have become valuable thanks to Tesla’s increased stock price. But earlier this year, a court in the state of Delaware, where Tesla is based on paper, rejected the compensation package after a complaint from a small investor. The outcome of the new vote on the billion-dollar reward is therefore not decisive, but it can provide Musk with additional arguments for his case in his appeal.
Some major shareholders had announced that they would vote against the gigantic bonus. The pension fund for Californian civil servants and the Norwegian sovereign wealth fund, among others, consider the pay excessive and are critical of the Board of Directors’ supervision of Musk. This includes Musk’s brother Kimbal.
In recent weeks, Musk and proponents of the pay have openly campaigned for shareholder approval. Investor Ron Baron, who has been investing in Tesla for years, warned that Musk could resign from the car manufacturer. That would ultimately put Tesla’s future at stake, he suggested.
Shareholders also voted in favor of Tesla’s formal move from the state of Delaware to Texas, where the automaker is headquartered. Musk announced this move earlier this year out of dissatisfaction with the adverse judgment in Delaware. The meeting also approved other proposals, including the re-election of board members Kimbal Musk and James Murdoch, son of media mogul Rupert Murdoch.
– Thanks for information from Autoweek.nl