Tesla pushes for a massive Musk pay package as the EV maker rides the struggle sedan
“Restore shareholder democracy”... by approving Elon Musk’s $56B pay package. That’s what Tesla urged its shareholders to do yesterday for the second time. Musk’s pay was rejected in January by a judge who said Tesla’s process in arriving at the “unfathomable sum” was “deeply flawed.” The EV maker clapped back that 73% of shareholders had approved the plan, and that Musk hadn’t been paid for his work at Tesla since 2018, when the package was first put forward. The $56B would be the largest executive pay package of all time.
Outta here: Shareholders will vote again to yea or nay Musk’s pay in June, when they’ll also decide whether Tesla should be reincorporated in Texas from Delaware — a move proposed after a Delaware judge rejected Musk’s pay package.
Awkward timing… to ask for a raise. One analyst called Tesla’s first-quarter earnings a “nightmare” after it shared disappointing EV deliveries and production #s. Deliveries fell nearly 9% compared to the same quarter last year (Tesla’s first annual drop in nearly four years), and the company said it’ll lay off more than 10% of its workers. While Tesla blamed its bummer #s on factory disruptions, analysts pointed to a thornier reason: underwhelming EV demand. Tesla shares were down 37% for the year as of yesterday, making it one of the S&P 500’s worst performers, and its delivery #s don’t bode well for its earnings on Tuesday.
The meek shall inherit good PR… When companies struggle, outsiders tend to question whether execs deserve their pay. But opting for a smaller paycheck can be a good look: the CEOs of Alphabet, Apple, and Intel have taken pay cuts this year as tech cos lay off thousands. After Zoom said in February that it’d lay off 15% of its workforce, its CEO opted for a 98% pay reduction.