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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