Tesla’s chairman of the board, Robyn Denholm, says that voting for Elon Musk’s compensation package of up to $ 1 trillion essentially votes for Tesla’s future.
She only insists that Elon Musk can make this future come true without ever explaining why.
Tesla’s board of directors is almost always silent. They rarely comment, if ever, if something, unless it’s time to get Elon Musk paid.
Then, especially President Robyn Denholm, they come out of their cave to sell to shareholders, that Elon Musk, the richest man in the world and already the largest Tesla shareholder, should receive the biggest compensation package ever – beating the next largest with a factor of 10.
They recently gave Musk a package of $ 29 billion without getting shareholder approval, and now they suggest a new one that may be worth about $ 1 trillion in stock options for Musk if all milestones are met.
Denholm, who rarely, if ever, gives interviews, now makes the rounds to try to sell the package to the shareholders.
Tesla’s board of directors even buys Google ads to sell the package to shareholders, despite the fact that the car manufacturer rarely uses advertising to sell his own products.
In an interview with Bloomberg, Denholm claimed that Musk is the only one who can perform Tesla’s mission, and they believe that although he is the only person who is most benefiting from Tesla’s stock right now, he still has to be motivated with multiple stock options:
AI and autonomous are ahead and the center of it, both in the vehicles, but also in our Optimus setup and what we do from a robotic perspective as well. And then to have the responsibility of the board is to look at who CEO is in the next period, and we believe Elon is the right CEO of Tesla over this transformative period. And our view is that he is a generational leader – there are no other people out there like Elon who can actually lead the company during this next decade or so. And then, when you first decide who the manager should be, you need to establish the compensation package to incite and motivate him to actually deliver against the ambitious goals.
When asked about Musk’s political activities, Denhom basically said that it is not the business of the board and they only judge him by the company’s results:
Yes, I mean what he does from a personal perspective with regard to his political motivations, etc., is up to him. From our perspective as a board of directors, we clearly measure him on results and measure him on what he does as CEO of Tesla. Our view is that he has delivered big time in the past and we look forward to him doing it in the next era.
However, she did not explain what he has delivered recently.
Tesla’s sales of vehicles have been in decline for two years now. Earnings have fallen for three years. Tesla’s autonomous driving effort is years behind, with Musk claiming it would be since 2018.
The only thing that is up is Tesla’s stock, and it seems to be up on people who believe what Musk is claiming, despite a long story of being consistently wrong.
Still, Denhom insists that a vote for Musk’s compensation package is a vote on Tesla’s future:
I think the really important thing is that shareholders vote on the company’s future, not just on a compensation package. The compensation package is the instantiation of the goals and ambition – the super ambitious goals that we have as a company. So I think with this proposal, it’s really up to the shareholders what the future of Tesla looks like.
The Tesla shareholders vote on November 6 at the annual shareholder meeting.
Electek Tag
The board has sold hundreds of millions of dollars worth of the Tesla share in the last year.
They want to give Elon Musk ridiculous compensation because he also let them give himself excessive compensation, to the point where they had to run with shareholders and return almost $ 1 billion value of excessive board compensation. It’s pathetic.
It’s about greed. It’s no longer about the mission.
Forget the clear fact that Tesla’s CEO loses his mind and uses his platform to stoke political violence almost like a full -time job in the last 2 weeks, the compensation also doesn’t make sense on a purely reasonable basis.
Musk is greedy compared to the average human being, but he is also greedy in a billionaire scale.
In comparison, Jeff Bezos never made stock options during his term of office as CEO of Amazon because he was already fully motivated to perform in the company when he was in favor of the most from the stock:
Musk is in the same situation, but he apparently needs another trillion dollar value of stock to be motivated.
If the problem is the control of the company through his wand, which is obviously rubbish as he has full control of Tesla with only 15% of the proportion, Tesla could do the same as Ellison with Oracle:
Ellison managed to increase his ownership of Oracle through the repurchase of shares that helped shareholders instead of diluting the stock as Musk’s compensation package.
In short, there are several ways of achieving what Musk claims to achieve while taking advantage of all shareholders equal, and him more proportionate as the greatest shareholder, but he chose to push for the opportunity that results in him getting a disproportionate advantage.
It’s called greed. Clean and simple.
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