Tesla (TSLA) shareholders are gearing up for a pivotal vote on CEO Elon Musk’s unprecedented $56 billion pay package. This highly anticipated decision will be revealed during the company’s shareholder meeting on Thursday, June 13.
Yahoo Finance’s Pras Subramanian breaks down the details, discussing the Telsa independent chair’s support for the approval of this substantial pay package.
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This post was written by Angel Smith
Video Transcript
And Tesla shareholders are voting on Ceo Elon Musk, $56 billion pay package next week.
And for the details we’re bringing in Yahoo Finance’s Prize, Subramanian.
Um This is a big one.
We’re talking uh tens of billions of dollars for one individual.
What should we expect?
Yeah, you know, big drama next week, coming up on that shareholder meeting on Thursday, you know, Robin Denholm, the independent chair there at Tesla uh posted an open letter yesterday talking about how uh we they need to pass this, this package.
So to retain quote Elon’s attention and motivation.
Also writing that Elon has quoted what other places to go to take his ideas.
I don’t know.
But you got, I found this to be remarkable.
I’ve never seen it.
Pen and chair, write an open letter supporting a CEO S pay package uh in, in 15 years of doing this.
I’ve, I’ve yet to see that.
I don’t know if you guys feel the same way that II I just I it’s remarkable to me.
Um That being said, we also have a couple of bulls like Cathy Wood uh talking about how Elon’s interests are aligned with shareholders most strongly of any Ceo Ron Baron, of course, saying Elon is the key man of key man risk.
So, you know, and Bulls are on board there.
And for the most part, most people expect the pay package to survive and to be overwhelmingly sorry, overwhelmingly pass as according to Dan Ives.
So I think we might, might not see that drum, but there’s gonna be some comp there’s a lot of shareholder groups and also Iss and Glass Lewis talking about how this is not a good thing for shareholders.
So we’ll see what happens next week, but I’m just surprised by the push by the board to get this package passed.
Yeah, I mean, and the other question is even if they do approve it, what will be the reaction from Musk?
You know, now that he has held, I mean, he’s holding the company hostage in some ways by saying maybe I’m gonna take my A I tech somewhere else, for example.
Ok.
So does that mean if they do approve it that’s off the table or does he still gonna sort of needle uh you know, I, I don’t know, he’s unpredictable.
So it’s hard to say.
I mean, it sounds like to me that they’re saying, hey, if you give him the money, he’ll stick around, he’ll be the, he’ll be the key man, as they say, he’ll be around, he’ll focus mostly on Tesla.
Which to me sounds seems a little bit strange to have to kind of financially, sort of motivate the CEO to, to stick around.
I mean, usually, well, even before this whole pay package fight happened, he was splitting his time between his various ceo DMS.
So, we’ll see.
Yeah, I think the expectation is, yes, he better stick around.
We’re gonna approve this massive pay package.
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