The Technology section is published with the support of Favbet Tech
Tesla Chairman Robin Denholm calls on the company's shareholders to approve a payment to Elon Musk in the amount $56 billion. On June 13, Tesla shareholders will decide the fate of the compensation package.
This will be the second time shareholders will vote on Musk's salary after a Delaware judge overturned their first decision. earlier this year on the grounds that the approval process was “deeply flawed.” The company is now urging shareholders to approve the proposal a second time.
“Elon is not a typical leader, and Tesla is not a typical company. So the typical way companies reward key management won't produce results for Tesla. It takes something different to motivate someone like Elon,” Denholm wrote in a letter to shareholders filed with the US Securities and Exchange Commission.
Denholm hints that Musk might have gone “elsewhere” without proper motivation:
“What we recognized in 2018 and continue to recognize today is that Elon certainly does not have unlimited time. He also has no shortage of ideas and other places where he can make an incredible difference in the world. We want these ideas, this energy and this time to be [spent] at Tesla for the benefit of you, our owners. But this requires mutual respect.”
Denholm's assertion that Musk needs motivation indicates the board's concerns about the billionaire's tenure at the company. SpaceX, The Boring Company, Neuralink, X and xAI are diverting Musk's attention away from Tesla, which is actually the main source of his wealth and popularity.
“We all made a commitment to Elon. Elon has delivered on his commitment and created tremendous value for our shareholders. By reaffirming our commitment to Elon, we demonstrate our support for his vision for Tesla and recognize his outstanding achievements — something that will motivate him to continue to create value for shareholders.”
Early voting suggests that Elon Musk may get what he wants. A report from trading platform eToro last month showed that owners of about 25% of Tesla have already voted. Of those, more than 80% voted in favor of the compensation package.
Musk is also seeking to gain more control over Tesla with a 25% stake. He currently owns about 13% of the company after selling billions of dollars in shares to acquire Twitter. At X, he expressed his intention to spin off Tesla's AI division into a separate company if his demands were not met.
English for beginners from Englishdom. For those who are just starting to learn English and want to learn basic vocabulary and grammar. Course registration
Favbet Tech is an IT company with 100% Ukrainian DNA that creates perfect services for iGaming and Betting using advanced technologies and provides access to them. Favbet Tech develops innovative software through a complex multi-component platform that can withstand enormous loads and create a unique experience for players. The IT company is a part of the FAVBET group of companies.