Elon Musk says Tesla stockholders approving his $56 billion pay package by "wide margins"
CBSJun 24
Tesla Shareholders Approve Musk Compensation Package
Image copyright: Chesnot/Contributor/Getty Images Entertainment via Getty Images
The Facts
Tesla shareholders voted on Thursday to approve CEO Elon Musk's $44.9B compensation package — previously valued at $56B before a drop in Tesla's stock — and to move the electric vehicle (EV) maker's legal headquarters to Texas.
This development comes despite disapproval from significant investors Glass Lewis and Institutional Shareholder Services.
The Spin
Narrative A
While Tesla's stock price has certainly dropped since the deal was first proposed, the agreed-upon terms were previously met and the board, as it was in 2018, seems set on fulfilling its promise. This vote isn't just about money —Musk requires full control over the company if his innovative ideas are to remain the backbone of Tesla.
Narrative B
Tesla has gone from a world-leading EV maker in hot pursuit of giving everybody affordable and effective green energy cars, to one advertising unnecessary cyber trucks and spending time debating pay packages. Tesla's success should be based on manufacturing and sales, not casino-style money transfers to satisfy shareholders.