Tesla shareholders have given the green light to the plan for maxi remuneration for Elon Musk . For the owner of the company it is a record sum, 56 billion, never earned by any CEO in history : it was promised to him in 2018 upon achieving the ambitious objectives achieved.
Musk has therefore beaten the odds and achieved the set targets earlier than expected. And if in 2018 the billionaire's compensation was worth "only" 2.3 billion dollars, over the years it has jumped with the increase in Tesla's value and the various tranches of options that have matured. Up to the record figure of 56 billion.
The Norwegian sovereign wealth fund as well as the powerful California pension fund Calpers have said they are against the maxi-compensation: in their opinion it is senseless. Other institutional investors such as Ark Fund, however, have sided in favor , in the belief that Musk is not an ordinary CEO and should be rewarded. Furthermore - this is the basic theory of those in favor - the compensation was set by a contract and contracts must be honoured.
The interference of justice, with the Delaware judge who rejected it, is a slap in the face to capitalism, they add, inviting those against it to carefully read the contract they signed in 2018 and to take into account their earnings with investments in Tesla.
However, the final say on the $56 billion check to Musk is not that of the shareholders. The outcome of the vote will in fact be submitted to the judge who has already rejected it and who is called upon to certify the result in one direction or another.
(Unioneonline/vl)
