Elon Musk's Proposed Pay Package is At the Center of an Intensifying Game of Chicken

by Chris Teague

Published: May 28th, 2024

elon musk s proposed pay package is at the center of an intensifying game of chicken

Tesla has seen its ups and downs in recent times, though it has felt like more downs. Layoffs, temporary plant closures, and government investigations be damned, however, as CEO Elon Musk is determined to land his proposed record compensation package.

The Tesla board is tasked with voting on the pay package, which reaches an astonishing $56 billion. The consideration comes after a 2018 package was nixed in a Delaware court. Musk and the board both believe that they’d have fared better in a Texas courtroom, though a vote to approve the latest package doesn’t guarantee that there won’t be further legal battles, even in the Lone Star State.

While some shareholders are staunchly opposed to the deal, others have set out to influence opinions toward voting to approve. The board has a website on the topic and has been buying ads to sway voters. Musk’s fans have also made a lot of noise and have been trying to intimidate voters into approving the pay package.

In 2018, Musk said that he wouldn’t leave Tesla if the package wasn’t approved, but he also recently threatened that he would not create new AI technology for the automaker if he didn’t have at least 25 percent control of the company.

It’s unlikely that Musk would jump ship if the vote doesn’t go his way, but it’s clear Tesla needs a stronger, more independent board. Right now, it appears that the board is working with Musk instead of for the company, which is a bad look when Tesla is in such a transitional state.

[Images: Frederic Legrand via Shutterstock and Tesla Motors]

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Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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3 of 53 comments

Jeffrey on May 29, 2024

Elon Musk is a questionable leader. His leadership style doesn't build trust with his employees and it slows innovation and development. His focus should be on people, product, and customers not himself. The competition in this area is fierce and Tesla's products look tired and repetitive their sytle language is no longer innovative or industry first.

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- Jeff S on May 29, 2024
  
  In other countries except for the US Chinese manufacturers like BYD are outselling Tesla. Tesla is no longer the only EV maker and without change to their products they will continue to lose market share. I do believe some type of compensation agreement should be reached but 56 billion is far too much. Musk thinks of Tesla as a tech company but in reality Tesla is a car company and should be operated as a car company. If Tesla were a true tech company they would be continually improving their product and they would not be selling basically the same product with few changes for years. Companies like Apple are technology companies because Apple continually comes out with new products and innovation. For Tesla to thrive and grow Musk needs to not be involved in the day to day operations of Tesla. The Cybertruck is an example of why Musk needs to not be the CEO. Most CEOs would never have given the green light to the Cybertruck.
  
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Bd2 on May 29, 2024

Elon Musk is God and Lord Almighty. Amen.

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