Tesla CEO Robyn Denholm has called on the company's shareholders to approve Elon Musk's $56 billion bonus, otherwise they risk losing him. This was reported by The Verge.
The next shareholder vote will be held on June 13, when a decision on the payout should be made. Prior to this vote, the company will hold a full press conference to encourage shareholders to approve the decision.
“Elon is not a typical executive, and Tesla is not a typical company. So, the typical way in which companies compensate key executives is not going to drive results for Tesla. Motivating someone like Elon requires something different,” Denholm wrote in a letter to shareholders.
She also says that this payment is not so much about money, because Musk has a lot of it, as it is about motivating the businessman by showing him how much he is valued in the company. Denholm also notes that Musk does not have unlimited time. If shareholders don't appreciate it, he can use his ideas elsewhere.
The day before, a number of proxy firms had recommended against approving the payout. However, early voting indicates that shareholders are inclined to pay Musk. It is reported that about 25% of the company's shareholders have already voted, of which 80% were in favor.
“We all made a commitment to Elon. Elon honored his commitment and produced tremendous value for our stockholders. Honoring our commitment to Elon demonstrates that we support his vision for Tesla and recognize his extraordinary accomplishments — this is what will motivate him to continue to create value for stockholders,” Denholm added.
In 2018, the board of directors approved Elon Musk's remuneration, but the following year, one of the shareholders went to court to cancel it. In early 2024, Judge Katherine McCormick decided to cancel it, saying that such a payment would be unfair to the auctioneers and that the board of directors was too carried away by the rhetoric around Musk.