Tesla's chairman urged shareholders to re-approve Musk's sky-high compensation package

IT House

2024-05-04 08:21Posted on the official account of Shandong IT Home

IT Home reported on May 4 that recently, Tesla issued a proxy statement to shareholders for the upcoming shareholders' meeting to be held in June, and the two main topics are the relocation of the company's registered place to Texas and the re-approval of Musk's compensation plan.

In a video released Friday, Tesla Chairman Robin Danholm urged shareholders to reapprove Musk's 2018 compensation package. Danholm said it was "very important" for the company's future and that it was fair for Musk to receive the award.

Danholm believes that under Musk's leadership, Tesla's revenue grew from $11.8 billion to $96.8 billion and turned a $2.2 billion loss into a $15 billion profit. These milestones increased Tesla's value from $53.7 billion to more than $790 billion, and investors saw their stock value rise by 1,100%.

According to a previous report by IT House, Tesla shareholders voted in 2018 to grant Musk a $55 billion (IT Home note: currently about 397.1 billion yuan) CEO compensation package, on the condition that Tesla can achieve amazing market value and profit growth.

In January, a lawyer for a Tesla shareholder accused Tesla's board of directors of misleading statements about Musk's compensation plan submitted to shareholders, an allegation upheld by a judge.

The judge found that Tesla's board of directors and Musk did not follow the relevant regulations of the public company in the process of formulating and submitting the compensation plan. The court ruled that Tesla had corporate governance issues in developing its compensation plan and that it had not informed shareholders of these issues prior to their voting.

The Delaware court ruled invalidating the shareholder vote and forcing Tesla to revoke the approximately $55 billion stock option compensation plan. In this regard, Musk posted on X: Do not register a company in Delaware.

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