While Tesla faces a wave of mass layoffs, Elon Musk asks a huge bonus. After deleting more than 10% of its workforce Due to financial difficulties, Tesla seeks to reinstate the mammoth payment of 56 billion dollars for CEO Musk, a compensation package rejected by a Delaware court last January for an "untransparent process".
The performance of the title on Wall Street: Tesla loses around 2%.
Elon Musk's super pay rejected by Delaware
This package, created way back in 2018, has been the subject of bitter disputes by shareholders. Too much wealth, too much power concentrated in a single individual. Yet, Musk managed to overcome all 12 obstacles placed in his path: revenue, profits, stock price. A titanic undertaking that catapulted the value of his compensation well over 50 billion dollars.
But this is not just a story of astronomical figures. It's a saga that began in 2022, when the shock case was brought to court by Tesla shareholders who defined the "package" as excessive e unreasonable. During the trial, controversies over the acquiescence of Tesla's board of directors to Musk's wishes were brought to the fore.
Inside this board there are numerous loyalists of the CEO, including even his brother. A dynamic that has raised many questions about the transparency and independence of the decisions made. So, ultimately, the Delaware court ordered the cancellation of what he defines as "potentially the largest package in the history of the markets" and the return of the funds.
Tesla changes headquarters?
Musk, of course, was furious after the ruling, sending a sharp message via social media: “Do not register your company in Delaware.” Delaware is a small state but due to its pro-business atmosphere it is home to the headquarters of many large companies. Now, Tesla announces that he will ask shareholders to reapprove the canceled payment package and to approve the transfer of company registration from Delaware al Texas, an option that could change the very face of Tesla.
Despite the sharp decline in shares (lost more than 35% since the beginning of the year) and financial difficulties, Tesla's board seems more focused on satisfying the demands of Musk, the second richest man in the world, rather than addressing the problems corporate. With 2024 already starting out as a “nightmare year” for Tesla, the entrepreneur with his often controversial actions appears to be further fueling concerns among potential investors. It remains to be seen what will happen toassemblea of the automotive giant, scheduled for 13nd June. The question arises whether this is truly the right time to reward Musk with one of the largest corporate payouts in history considering his controversial behavior and the company's current challenges.
