Tesla’s board of directors is offering shareholders to pay Elon Musk up to $878 billion in company stock or take the risk of him leaving. If shareholders reject the package, Musk could leave the company, which might cause the stock to drop. Experts say this decision tests Tesla’s future and corporate governance rules.
The board and some shareholders believe only Musk can achieve his promises to turn Tesla into a company producing robotaxis and humanoid robots with artificial intelligence. If he meets the goals in ten years, Tesla’s market value could reach $8.5 trillion, and Musk would own about a quarter of the stock. Even if he misses most goals, Musk could still receive a record payout.
However, management and experts warn this package is a major risk for shareholders. Tesla’s future depends on one person, and Musk’s influence on the company is also a concern. Experts emphasize that responsible governance requires the board to maintain competition for the best CEO.
Musk’s shareholding and influence in the company allow him to demand record compensation. Shareholders will consider his 15% stake when voting. Experts say this decision is an important test for shareholders regarding the company’s future and value.
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