Tesla’s meeting towards the vote on Musk’s compensation: it wants the incredible figure of 56 billion dollars. The front of members against it is widening

The incredible remuneration that Tesla would like to recognize again this year to the founder and Elon Musk ends up in the sights of some of the shareholders. The tycoon and majority shareholder, who is among the richest men on the planet, would receive 56 billion dollars upon achieving a series of objectives. An unprecedented compensation […]

The incredible remuneration that Tesla would like to recognize the founder and CEO again this year Elon Musk ends up in the sights of some of the shareholders. The tycoon and majority shareholder, who is among the richest men on the planet, would receive, upon achieving a series of objectives, 56 billion dollars. An unprecedented compensation in modern history. For Italy it would be the equivalent of two financial maneuvers. Ahead of the shareholders’ meeting on 13 June, the Norwegian sovereign wealth fund Norges Bank Investment Managementwhich holds 0.98% of the electric car group worth 7.72 billion dollars, has however announced its vote against: contests the “total size of the prize” and says he is “concerned about the ways in which the structure of the performance“. Position in line with that of other partners including the US fund Calvert according to which the “value of the prize remains excessive, even considering the success of the company”.

Positions that reflect the indications of proxy advisor, analyst firms that specialize in advising investors on how to vote at shareholder meetings. The proxy Glass Lewis, for example, in his recommendation he talks about the “excessive size” of the remuneration agreement. Tesla responded by saying that the proxy “omits key considerations, uses one faulty logic and is based on speculation and hypotheses.” A rejection of the CEO’s remuneration at the meeting, even if only consultative, could embarrass Musk greatly, so much so as to induce him, according to market rumours, to give theGoodbye to his creature. In recent days the president of Tesla Robyn Denholm, in a letter to shareholders, he explained that the massive payment to the CEO, basically made up of a business planassignment of titles which develops over a decade, serves “to maintain theAttention of Elon and to motivate him to to focus on achieving amazing growth for our company.”

The remuneration agreement was originally worked out in 2018, but the court judges of Delaware they canceled it earlier this year, saying investors had not been fully informed about key details. The controversy over pay comes at a delicate moment for Tesla, particularly for a series of initiatives that look to the group’s future. The market is looking at the design of a low-cost vehicle and the development of autonomous driving technology. Tesla is “going through a difficult period of growth and therefore we need to be patient”, explain financial analysts. “We expect the 2018 package to be reapproved while the Delaware court ruling may become outdated as Tesla will now move to Texas“.

The transfer proposal should pass without any problems. Chairwoman Denholm urged shareholders to vote in favor because it “provides a better platform for innovation, as legislators and courts are better placed to make decisions about how corporate law applies to companies”. On this point, both the US fund Calvert and the Norwegian sovereign fund have expressed their favorable opinion, which has invited Tesla to also adopt new policies relating to trading.