After firing 10% of employees, Musk wants to get $55 billion from Tesla

After firing 10% of employees, Musk wants to get $55 billion from Tesla

247 – After announcing plans to lay off 10% of its global workforce, Tesla sent a letter to shareholders requesting the approval of a massive compensation package for Elon Musk, worth US$55.8 billion, roughly R$293 billion. This step intensifies the controversy surrounding Tesla CEO's salary practices, according to what he points out a report From the Infomoney website.

The request was formalized in a letter to the Securities and Exchange Commission (SEC), the US capital markets regulator, and will be submitted to a vote at the company's next annual meeting, scheduled for June 13. Along with this proposal, moving Tesla's headquarters from Delaware to Texas is on the agenda, a move related to the controversy surrounding payments to Musk.

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Musk's extraordinary compensation package was initially proposed in 2018, consisting of a stock option grant over 10 years, contingent on the company meeting operational and financial goals. However, a shareholder legally challenged the request, leading to a court decision nullifying the package in January this year. The responsible judge argued that Musk exercised control over the approval process, while the board misled investors by calling Musk's compensation process “deeply flawed.”

In response, Musk moved the headquarters of his rocket company SpaceX from Delaware to Texas in February, a move he plans to replicate at Tesla. Tesla CEO Robyn Denholm signed the letter sent to shareholders seeking support for the headquarters relocation, arguing that Texas is already the center of the company's business, highlighting the Texas Gigafactory as one of the largest factories in the United States.

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Denholm also defended the 2018 salary package, stating that it was necessary for Musk to deliver unprecedented transformational growth in order to receive any compensation, acknowledging the risks associated with that decision. She stressed that this package encouraged amazing innovation and progress at Tesla, which led to significant economic gains.

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While Tesla's board of directors continues to strongly support the compensation package, the proposal faces renewed scrutiny due to a recent wave of layoffs and previous controversy over its legality. The annual shareholders meeting next June promises to be a pivotal moment for the company and Elon Musk, as the fate of these proposals will be determined.

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About the Author: Camelia Kirk

"Friendly zombie guru. Avid pop culture scholar. Freelance travel geek. Wannabe troublemaker. Coffee specialist."

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