Written by Ross Kirber
New York (Reuters) -It is likely to be approved by the 10 trillion dollar package to retain the CEO of Elon Musk by shareholders at the company’s annual meeting in November, although the amount is amazing.
This is because it was designed, taking into account the maintenance of musk in its place, addressing concerns about the technical expectations of the company and giving the owners of adult companies just a sufficient reason to support the huge amount.
Earlier on Friday, the Automobile Industry Board approved what was called “the ambitious ambitious incentive package for a pioneering executive, ambitious and unique executive” determining the goals of profits and evaluation – granting millions of shares musk over the next decade if they hit them. It immediately gives 96 million shares of shares worth more than $ 31 billion in trading during the day on Friday, which expands over the next two years, in addition to further control of the company. The total compensation package is 2025 north of $ 113 billion, and the Executive Compensation Research Company was estimated.
“The payment package, which makes a great bet on the future of robots, may witness the support of shareholders,” said Taufiq Rahim, a Spacex investor and his manager in 2040 consultants. “But it raises greater social questions about the huge gains that will go to a few capital owners, which are likely to be unnecessary and will face general pressure.”
The council said in a file of securities, that the package is designed to prevent musk from leaving and directly focusing on converting Tesla into a force in artificial power and robots. She said that musk is the only person on this planet that can open the full potential of Tesla.
She said that the Compensation Committee began negotiating the Musk salary package in February, at a meeting with lawyers 37 times and directly with Musk 10 times over seven months. Some elements were not negotiable for the CEO of the events: he wanted 25 % of the company, to control the future direction of Tesla, and they are fully compensated for the 2018 payment package that was suspended in lawsuits.
Threats to leave
Musk threatened to leave more than once, and the council was concerned that the company’s talent from artificial intelligence would follow it outside the door.
31 billion dollars of bound shares, which he cannot sell for at least five years, is a partial recovery of a $ 56 billion payment plan that was canceled by the Dillauer Court last year. If musk wins in court in a specific time frame, he will not receive one time for it “so there can be no” double decline. “
“Musk also raised the possibility of following his other interests and leaving Tesla if he did not receive such confirmation,” the board of directors said.
The approval of the shareholders
Equilar said the payment plan is the largest for any CEO ever. Although he is likely to face legal challenges, compensation experts believe that he wins the approval of shareholders.
“Over and repeatedly, Tesla shareholders have agreed to these grants over the years,” said Courtney Yu, Reuters’ equivalent research director. “Although it may seem strange now, shareholders will get a huge value from him if Elon Musk succeeds.”
None of the three largest external investors in Tesla, the Vanjard Group, Black Rock or Street, was immediately on Friday how they would vote. Among them, Vangard and Black Rock supported the $ 56 billion salary package last year, while Street Street’s money voted against her.
Tesla and Top Funds can still expect to pressure wages, with a number of federations and treasury children in the public sector who express anxiety.
“We urge the shareholders to refuse to seize Musk’s money, withdraw the rubber seal in the Tesla Council, and restore the criteria for the governance of basic companies,” Randy Winjern, president of the American Teachers Union, said in a statement.
Musk currently controls nearly 13 % of the company, according to LSEG data. Tesla calculates an additional option of 303 million options for the 2018 payment package that still faces a legal dispute it gives it a 19.7 % interest in the company.
He owned at least 25 % if the plan was approved, as long as it hit the goals of its performance and sticks to it for at least another seven years. The final prize can make more than 12 segments due after it reaches some prominent landmarks, as Tesla is the most valuable company in the world with an ambitious market formation of 8.5 trillion dollars, which makes it worth more than Microsoft, Meta Platforms and Alphabet combined, today, note the Board of Directors.
Christine Hull, founder and chief investment official in Tesla Investor Nia Impact Capital, described the irresponsible package. “This is money for the investor that can enter into research, development or acquisitions, and they are places that will benefit Tesla in the long term,” she said, adding that she is considering challenging with other shareholders.
Dan Cutsworth, AJ Bell, described MULL as a vision, but said that the wage plan was excessive and could put a bad precedent in corporate governance. Asked if Musk deserves a lot.
He said, “He heads a company that lost its edge, and is overlooked by the competitors, which was distorted by its brand due to Musk’s actions outside Tesla,” he said.
“Choose a number”
Tesla shares closed 3.6 % at $ 350.84 on Friday. 13 % decreased for 2025, although they recovered from their lowest levels. Investors concern about the deterioration of electric car business and the height of foreign competition.
“In one minute, Tesla Council wonders whether Elon Musk is a responsibility towards the company by looking at its explicit views and political deviations, and the following time they say effectively” choosing a number “, that is,” to lock it for as long as possible. “
“Certainly, musk should fight for its job, and not the Tesla Council fights to keep it?”
(Ross Kerber’s reports in Boston, Don Kubiki participated in New York, Simon Jessoub in London, Archia and Akash Sardam in Bengaluru and Matt Trissy in Washington; edited by Down Kubki, Mike Colyas, Matthew Lewis)