Elon Musk Could “Leave” Tesla If He Doesn’t Receive $56B Pay Package
This week, Tesla shareholders will decide if CEO Elon Musk should get a $56B compensation package, making him the highest-paid CEO in history. It’s the second time investors are weighing in on his compensation, with the original plan deemed “deeply flawed” by a Delaware judge. Now, with Tesla much bigger, the stakes are higher.
- Proxy giants Institutional Shareholder Services and Glass Lewis recommended shareholders vote against Musk’s package, calling it excessive.
- Tesla’s chair warns that if Musk’s pay package isn’t approved, he could “step back” or leave to focus on other ventures like SpaceX or xAI.
What’s likely? Earlier this year, Musk told shareholders he wouldn’t build AI products at Tesla unless he owned a quarter of the company — more than double what he owns now. Seems like a hard sell, considering his existing proposal is under fire. Luckily for Musk, his OG package is probably getting the green light, especially with retail investors, who own 44% of the company and have been overwhelmingly supportive of authorizing the package. Ultimately, we’ll see what Thursday brings.
