Tesla investors express discontent over alleged nepotism within the company's board.
In January, a judge in Delaware put a halt to a 46 billion dollar salary package for Tesla's CEO, Musk. However, there's also resistance among shareholders. They're encouraging investors to stop the payout and criticize the close relationship between two board members and Musk.
A group of Tesla shareholders is asking other investors to oppose Elon Musk's disputable 46 billion US dollar salary package. This group, which consists of NYC Comptroller Brad Lander, is advocating for the rejection of Musk's pay package and the re-election of two of the electric car maker's board members. The argument made is that these two board members are too close to Musk and underestimated the value of his compensation.
Musk's remuneration was initially approved by shareholders in 2018, but was declared invalid by a Delaware court in January as there were concerns about the approval process. Since then, Tesla has resubmitted the compensation package in its proxy filing, claiming that Musk deserves the payment due to his achievements in terms of Tesla's share price and operations in 2018.
Nonetheless, this package has raised doubts amongst certain shareholders regarding the independence of the board and Musk's position as Tesla's CEO as the company deals with decreasing demand for electric cars and rising competition. They also want the company to reject the re-election of Kimbal Musk and James Murdoch to the board. The reason being, Kimbal Musk is Elon Musk's brother and has been a board member for the past 20 years, while James Murdoch is a personal friend. Murdoch's family is also a significant shareholder in Fox Corp. and the parent company of the Wall Street Journal, News Corp.
Shareholders will vote on Musk's compensation package and other suggestions, such as moving Tesla's headquarters to Texas, on June 13th. The group also consists of SOC Investment Group, the union-owned Amalgamated Bank, United Church Funds, Nordea Asset Management, and a Danish pension fund known as AkademikerPension.
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Tesla shareholders, criticizing the close relationship between Elon Musk and two board members, are urging investors to reject the re-election of Kimbal Musk, Elon's brother, due to concerns about nepotism in Tesla's Management Board. Despite Elon Musk's brother being a board member for over 20 years, Tesla shareholders believe that his position could impact the independence of the board and Musk's role as CEO.
Tesla shareholders, worried about the payout of Elon Musk's controversial 46 billion USD salary package, are asking other investors to oppose it. These shareholders argue that the two board members who are too close to Musk underestimated the value of his compensation, contributing to the discontent among shareholders.
The controversy surrounding Tesla's Management Board and Elon Musk's salary package has led a group of shareholders, including NYC Comptroller Brad Lander, to advocate for the rejection of Musk's pay package and the re-election of certain board members. This group is concerned that the close relationship between the board members and Musk could negatively impact Tesla's decision-making and shareholder value.
Source: www.ntv.de
