Tesla's appeal to investors on Elon Musk's pay package, cancelled by court: 'One judge's opinion...'

Elon Musk's 2018 CEO performance award of $55.8 billion, now stands at around $47 billion due to Tesla's falling share price.

Published on: May 5, 2024, 10:07:29 IST

By HT News Desk, New Delhi

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Months after a Delaware court struck down Tesla's $55.8 billion salary package for Elon Musk, the EV maker's CEO, the company has once again requested its shareholders to reapprove the package, which was Musk's 2018 CEO performance award.

Also Read: Lawyers who successfully argued against Musk's $56 billion package seek Tesla stock as 'fees'

In a video statement on Friday, Robyn Denholm, the Chair of Tesla's board of directors, issued the appeal.

“We do not believe that one judge's opinion should void the will of millions of votes cast by all the owners of the company,” Denholm said in the video. “So once again, we are asking you to make your voices heard by voting for the ratification of the 2018 performance award,” she added.

Denholm argued that the billionaire's award was “fair” as under his leadership, the Austin, Texas-based carmaker's revenues grew from $11.8 billion to $96.8 billion, and it turned a $2.2 billion loss into a $15 billion profit.

Also Read: How Elon Musk's bloated Tesla pay package led to shift in Neuralink's legal home

These achievements, Donholm stated, increased Tesla's valuation from $53.7 billion to more than $790 billion.

“His (Musk's) success is shared by all stakeholders. Under him, the value of the investors' shares rose by 1100%. Your vote to bring back his pay, is incredibly important for the future of the company,” the Chair said.

In April, too, Tesla, in a proxy statement to the Securities and Exchange Commission (SEC), announced its plans to hold another shareholder vote on Musk's compensation package, which includes stock options.

Also Read: Elon Musk now wants Tesla investors to approve his $56 billion 2018 salary

The statement noted that the South African-born entrepreneur hadn't been “properly paid” for his work as CEO over the past six years. The package, however, is now worth around $47 billion due to Tesla's falling share price.

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