July 21, 2024

Taylor Daily Press

Complete News World

“Musk can leave if he does not receive a maximum bonus of 56 billion.”

“Musk can leave if he does not receive a maximum bonus of 56 billion.”

The question of whether or not Elon Musk will receive his $56 billion bonus will be settled on June 13. Chairman Robin Denholm is now turning up the pressure on shareholders with a letter.

what mentioned before: As CEO of Tesla, Elon Musk received a long-term bonus in the form of stock options in 2018 if he achieved certain financial goals. This worked every time, and Musk received a $56 billion bonus as a result. One investor disagreed and went to court. He was right: Musk’s bonus was cancelled.

In the news: Tesla CEO Robyn Denholm has been trying for some time to get Musk’s compensation package approved. Now, in a letter, she presents the final argument: Musk could resign if he doesn’t get his money.

  • “Elon is not a typical manager and Tesla is not a typical company.” You read. “So the typical way companies compensate top executives is not going to deliver results for Tesla. Incentivizing someone like Elon requires something different.”
  • Denholm refers to this astronomical quantity as “something else.” It is possible that Musk will go “other places.” “What we realized in 2018 and continue to realize today is that there is one thing Elon definitely does not have: unlimited time.”
  • Elon Musk’s lack of time, and especially attention span, is notorious. Tesla employees often complain about Musk’s lack of interest in the car company. The CEO divides his time and is simultaneously busy with social media platform X, artificial intelligence developer xAI, and space company SpaceX, among others.

Musk’s super bonus doesn’t actually seem to be a problem

to follow: Musk seems to be finding his way.

  • All shareholders must have voted on Musk’s package by June 13 at the latest. According to Denholm, “Clearly it’s not about the money.” Shareholders appear to be following in her footsteps. According to Reuters news agency, 25% of shareholders have already voted, of which 80% voted in favor of retaining Musk’s super bonus.
  • Denholm’s letter heightens the pressure: “Elon has delivered on his promise and created tremendous value for our shareholders. Honoring our commitment to Elon shows that we support his vision for Tesla and recognize his exceptional accomplishments.”
  • Thus Elon Musk remains a polarizing figure. Is he a genius who deserves a huge reward, or an unworldly man who makes a fuss when he doesn’t get his way? Shareholders seem to think first.
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