Houston, Texas – Tesla has unveiled a new website with the aim of persuading shareholders to support the reinstatement of Elon Musk’s $55 billion compensation plan. The plan, initially approved in 2018, involved a fully stock-based CEO compensation package for Musk, making it one of the largest in history.
However, in January, a judge ruled in favor of a Tesla shareholder’s claim that the company’s board had misrepresented the compensation plan to shareholders. The judge found that there were governance issues within Tesla’s board when designing the plan, and these issues were not disclosed to shareholders before the vote.
As a result of the ruling, Tesla was required to revoke the compensation plan. Now, the company is seeking approval from shareholders to relocate its state of incorporation to Texas and to revote on Musk’s compensation plan without any alterations.
In an effort to sway shareholders’ votes, Tesla has launched the website ‘SupportTeslaValue.com’, advocating for the benefits of awarding the shares to Musk to safeguard their investment and Tesla’s future. The site emphasizes that the compensation plan aligned with shareholders’ interests and successfully achieved its goals, despite its ambitious nature.
However, the judge’s decision highlighted concerns about the necessity of such a high compensation package for Musk, particularly considering his substantial ownership stake in Tesla at the time. The judge also raised issues regarding the process by which the compensation plan was structured and negotiated, suggesting irregularities and lack of robustness in the board’s actions.
Tesla shareholders are set to vote on the compensation plan again in June, along with decisions regarding the company’s relocation to Texas and the reappointment of board members, including Kimbal Musk, Elon Musk’s brother. It is important for shareholders to thoroughly review all available information, including the judge’s decision, before casting their votes to make informed decisions regarding the future of the company.