Tesla "moved", Musk's 400 billion salary, and the shareholders all passed!

National Business Daily

2024-06-13 12:22Published on the official account of Sichuan Daily Economic News

Edited: Huang Sheng

On the morning of June 13, Beijing time, Musk posted through the X account that at present, Tesla's two shareholder resolutions have been passed by a large margin. These two major issues are: CEO Elon Musk's $56 billion (about 400 billion yuan) compensation package, and whether the company's registered place has moved from Delaware to Texas, where its headquarters are located.

According to the "Daily Economic News", as the CEO of the world's largest electric vehicle manufacturer, Musk never receives a traditional fixed salary, and all his compensation is linked to the company's market value and performance.

In 2018, Tesla approved Musk's 10-year long-term compensation plan, including 12 sets of market capitalization and business goals. If Musk is able to achieve all of his goals, he will be rewarded with a cumulative 12% stock option on Tesla, which was worth about $56 billion at the time. This plan is also considered by foreign media to be the largest executive compensation package in the history of the United States. Based on Tesla's current closing price on June 11, the options are worth about $51.2 billion.

At the time, it seemed that it would not be easy for Musk to achieve all his goals, as the market capitalization target was as high as $650 billion, while Tesla's market capitalization was about $59 billion at the time. However, soon after the announcement of this long-term compensation plan, Tesla's development entered the "fast lane", and its market value once exceeded $1 trillion in 2021. Tesla Inc. also said that in the six years since Musk's 2018 compensation package was approved, he has created more than $735 billion in value for the company's shareholders.

As of the close of the U.S. stock market at 4 o'clock on June 13, Beijing time, Tesla's market capitalization was about $565.41 billion.

However, in 2022, some Tesla shareholders took Musk to court, saying that he spent most of his energy on other companies such as SpaceX, while using control of the company and the board of directors to hammer out a long-term compensation plan, so shareholders want the plan to be scrapped.

In January, a Delaware judge declared Musk's long-term compensation package null and void on the grounds that it was "unfair to shareholders." In this regard, Musk said that he would move Tesla's registered place from Delaware to Texas, which is also another major event that Tesla's shareholders will vote on at this shareholders' meeting in addition to Musk's compensation package.

Daily Economic News Comprehensive Public News, Daily Economic News (Reporter: Cai Ding)

View original image 245K

• 

•