Elon Musk on Monday reacted to a video put up by Tesla in which it has urged the shareholders of the company to vote. In the video, Tesla said that it has put forward two especially important proposals for the 'Annual Meeting of Stockholders' and that it requires the votes of the shareholders."Protect your rights as stockholders & protect the value of your investment by voting FOR the ratification of the 2018 CEO Performance Award & FOR Reincorporating Tesla in Texas," the post further said.
In the video shared by Tesla at the end it is written, “Tesla stockholders, YOU have the ability to enhance the future of the company.” “For the past six years, under Elon Musk’s leadership, you’ve seen the value of your investment increase ~1,100 percent. “The present and future value creation that Tesla is poised to deliver for all of you is at risk. We need your vote. Protect Tesla.”
Sharing the video post on X, Elon Musk wrote,"The Tesla team put this together of their own volition (I did not ask for it). Thanks"
The Tesla team put this together of their own volition (I did not ask for it). Thanks! https://t.co/8VRNhwmMxm— Elon Musk (@elonmusk) May 20, 2024
Tesla's chair of the board said the company needs to climb "Mount Everest" as it faces shareholder votes on relocating to Texas and CEO Elon Musk's $56-billion pay deal, the Financial Times reported on Friday.
Robyn Denholm, who has held Tesla's chairperson position since 2018, also dismissed criticism that she is too close to Musk, according to the report.
Last month, Denholm asked shareholders to reaffirm their approval of Musk's record-breaking $56 billion compensation that was rejected by a Delaware judge in January.
The board is in early days of the campaign and will meet with shareholders all the way through to the day of the vote, Denholm told the Financial Times.
The largest pay package in corporate America has no salary or cash bonus and sets rewards based on Tesla's market value rising to as much as $650 billion over the next 10 years from 2018.
"Every shareholder that I've ever talked to says that (the compensation plan) worked, Denholm said, adding that they appreciate that it drove a lot of shareholder value, according to the report.
Tesla's board has repeatedly come under fire for its close ties with the billionaire.
“Elon has not been paid for any of his work for Tesla for the past six years…,” Board Chairperson Robyn Denholm wrote in a letter included in the regulatory filing. “That strikes us — and the many stockholders from whom we already have heard — as fundamentally unfair.”
Musk’s pay was rejected by Judge Kathaleen McCormick of Delaware’s Court of Chancery, who termed the compensation as “an unfathomable sum” that was unfair to shareholders.
If Tesla shareholders vote in favor, it would not automatically entitle Musk to the money, Eric Talley, a Columbia Law School professor, said.
(With Agency Inputs)
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