Tesla's Proposed Pay Deal for Elon Musk: Tesla is seeking shareholder approval for a pay deal for CEO Elon Musk, valued at $56 billion, which would be the largest in corporate American history.
Previous Rejection: A similar pay deal proposed in 2018 was rejected by a US judge in January, who described it as an "unfathomable sum" and criticized Tesla directors for not fully informing shareholders about it.
Details of the Deal: The proposed compensation includes no salary or bonus but is based on Tesla's market value rising to $650 billion over 10 years. Currently, Tesla's market value is $500.36 billion.
Response from Tesla: Tesla has filed paperwork for shareholders to approve the pay deal again, along with seeking approval to move its headquarters from Delaware to Texas. Board chair Robyn Denholm defended Musk's compensation, stating that he has not been paid for his work for Tesla in the past six years.
Challenges Faced by Tesla: Tesla is facing challenges such as weak demand for EVs, safety concerns leading to car recalls, and issues with Musk's social media platform, X. However, Musk remains one of the wealthiest individuals globally.
Future Outlook: Despite challenges, Musk and Tesla are pushing for the pay deal's approval, highlighting Musk's significant contributions to the company's success and expressing disagreement with the previous court ruling.
Overall, the proposed pay deal for Elon Musk reflects Tesla's efforts to retain and reward its CEO amid legal challenges and operational difficulties.
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