Tesla’s Uphill Battle to Secure Shareholder Approval
Tesla (TSLA.O) faces significant challenges as it approaches crucial shareholder votes on relocating its headquarters to Texas..
Tesla (TSLA.O) faces significant challenges as it approaches crucial shareholder votes on relocating its headquarters to Texas and approving CEO Elon Musk’s $56 billion compensation package, according to the Financial Times.
Board Chair Robyn Denholm, who has led the board since 2018, likened the situation to climbing “Mount Everest” and dismissed concerns about her close relationship with Musk.
Tesla Board Chair Defends Musk’s $56 Billion Compensation Plan Amid Relocation Vote
Last month, Tesla Chair Robyn Denholm urged shareholders to reaffirm their support for CEO Elon Musk’s $56 billion compensation package, which had been rejected by a Delaware judge in January. Denholm emphasized that the board is still early in its campaign and will continue to engage with shareholders until the vote.
The compensation plan, the largest in corporate America, includes no salary or cash bonuses. Instead, it is entirely dependent on Tesla’s market value reaching up to $650 billion over ten years, starting from 2018.
“Every shareholder that I’ve ever talked to says that (the compensation plan) worked,” Denholm told the Financial Times, noting its role in enhancing shareholder value.
Tesla’s board has frequently faced criticism for its close ties to Musk. Following Judge Kathaleen McCormick’s decision to overturn the initial compensation package, Musk proposed relocating Tesla’s state of incorporation from Delaware to Texas.
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