Tesla's 6 billion dollar salary proposal turned down.
In a recent battle over a proposed $56 billion compensation package for Tesla CEO Elon Musk, a major investor has voiced their disapproval, a media report claims. Marcie Frost, head of the California Public Employees' Retirement System (CalPERS), voiced her concerns during an appearance on CNBC on Wednesday, stating, "We don't think the compensation is fitting for the company's performance."
CalPERS is one of the leading investors in Tesla, owning a sizable 9.5 million shares, as per LSEG. Musk, for his part, criticized the US pension fund, asserting that they were not honoring their commitments. On social media, he wrote, "What she says doesn't make sense. We've hit all the targets set in 2018. CalPERS is breaking its word." The pension fund has yet to respond to a Reuters request for comment.
Musk's compensation package marks the largest in the USA and consists entirely of stock options. The options are granted to Musk whenever specific growth goals for the carmaker are reached, goals that were established in 2018. The Tesla stock now boasts a near-sixfold value increase from early 2018.
Tesla is gearing up to permit its shareholders to vote on the compensation package once more, following a judge's decision in Delaware to overturn it earlier this year. The outcome will be revealed at the company's annual meeting on June 13, with the results seen as a test of support for Musk's leadership abilities.
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The media reported widely on CalPERS' disapproval of Tesla's proposed $6 billion salary package for Elon Musk, which includes a billion-dollar dollar salary package. Despite Tesla's significant stock increase, the dollar figure of Musk's compensation package sparked criticism from major investors like CalPERS.
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