The vote is starting today! Tesla shareholders have a big decision to make in the next month about Elon Musk.
Until June 13, they are set to vote on whether to reinstate stock options currently valued at $46 billion for Musk, Tesla’s chief executive. He would be, after the vote, the world’s richest man again.
The vote is necessary after a Delaware judge struck down Musk’s huge award in January.
The incredible stock award stems from 2018, when the Tesla board signed a pay package with Musk. In 2018, Tesla had a market value of around $50 billion and was losing money. According to the deal, Musk would get this enormous equity package if Tesla shares skyrocketed more than ten times.
Exactly that happened: Tesla is worth $570 billion this year – that’s why Musk earns the pay.
But: The Tesla shares are down already 30% this year and still falling, sales and profits are plummeting. So at least 30% of all shareholders are against the payout – and the number is increasing day by day.
Tesla board chair Robyn Denholm is still urging the board to pay for the $46 billion pay package – he fears that Musk will leave the company and Tesla will have a deep downfall if Musk is denied the premium.
Musk will use the huge payout – he says – ‘completely to fund my plans to bring humanity to Mars!’
