Tesla seeking re-approval for Elon Musk's 2018 pay package

SOURCE www.breitbart.com
Tesla seeks re-approval for CEO Elon Musk's controversial 2018 pay package after Delaware court ruling, facing challenges amidst drop in sales and increased competition in the electric vehicle market.

Key Points

  • Tesla seeking shareholder re-approval for Elon Musk's 2018 pay package after Delaware court ruling.
  • Musk's compensation package originally valued at $51 billion, now at $40.7 billion due to drop in share price.
  • Tesla also asking shareholders to approve move of incorporation from Delaware to Texas.
  • Tesla facing challenges with drop in sales, increased competition, and weaker-than-expected growth in demand for electric vehicles.

Pros

  • Elon Musk's compensation package was originally favored by 73% of Tesla shareholders in 2018.
  • Tesla argues that Musk's work over the past six years has helped generate significant growth and stockholder value.

Cons

  • Delaware court ruled the 2018 compensation plan was not proven to be fair by Musk and Tesla board.
  • Tesla facing challenges with drop in sales, increased competition, and weaker-than-expected growth in demand for electric vehicles.