Tesla Makes Case for $1 Trillion Pay Package for Elon Musk Ahead of AGM

Tesla has taken out digital ads to make the case for Elon Musk's proposed bumper pay package, worth a staggering $1 trillion, ahead of the company's annual general meeting (AGM) on Thursday. The electric car-maker has also featured a video on Votetesla.com, showcasing board chair Robyn Denholm and director Kathleen Wilson-Thompson praising Musk, as triumphant music crescendos in the background. However, it remains unclear whether all shareholders are in agreement with the proposal, which is set to become a referendum on Musk himself at the AGM in Austin, Texas. The AGM is expected to be a contentious event, given Musk's recent rightward political turn, which has made him one of the most polarizing chief executives in recent memory. Musk has taken to X, the social media platform he owns, to raise the stakes, saying the fate of Tesla "could affect the future of civilization." He has also used his social media megaphone to amplify some of the deal's high-profile backers, including Dell Technologies' Michael Dell, Ark Invest CEO Cathie Wood, and his brother, Kimbal, who sits on the Tesla board. According to Tesla's proposal, Musk's $1 trillion pay package would be tied to the company's stock performance and would be paid out over a period of 10 years. The company argues that the package is necessary to attract and retain top talent in the competitive electric vehicle market. However, some analysts have raised concerns that the package is excessive and could be a distraction for the company. Musk's recent actions have sparked concerns among some investors and analysts, who worry that his polarizing views could harm the company's reputation and deter potential customers. "Musk's comments and actions have become increasingly erratic and divisive, which could have a negative impact on Tesla's brand and stock price," said a spokesperson for a major investment firm, who wished to remain anonymous. Tesla's proposal has also sparked a debate about the role of CEO compensation and the impact of social media on corporate governance. "The fact that Musk is using his social media platform to promote his own interests and influence the outcome of the AGM is a clear example of the blurring of lines between personal and corporate interests," said a corporate governance expert. The AGM is set to take place on Thursday, and the outcome of the vote on Musk's pay package will be closely watched by investors and analysts. If the proposal is approved, it could set a precedent for other companies to offer similar compensation packages to their CEOs. However, if it is rejected, it could have significant implications for Musk's leadership and the future of Tesla. In a statement, Tesla's board chair Robyn Denholm said, "We believe that Elon's compensation package is fair and reflects his unique role as CEO and chairman of the board. We are confident that the package will motivate him to continue leading the company to success." Musk's brother, Kimbal, also defended the proposal, saying, "The package is necessary to attract and retain top talent in the competitive electric vehicle market. It's a risk worth taking to ensure the future of Tesla." The outcome of the AGM will be closely watched by investors and analysts, who will be looking for any signs of change in Musk's leadership style and the company's direction. As the debate over Musk's pay package continues, one thing is clear: the future of Tesla and its CEO hangs in the balance.