despite legal annulment, Elon Musk’s compensation plan resubmitted to shareholders

This plan, authorized by Tesla’s board of directors in 2018, was then estimated at $56 billion.

The car manufacturer Tesla will once again submit to its shareholders, during its next general meeting which will take place in June, the enormous remuneration plan of its boss, Elon Musk. This plan, authorized by the board of directors of the car manufacturer in 2018, planned to give the billionaire Tesla shares based on the achievement of several objectives over ten years. It was estimated, when it was adopted, at $56 billion.

“The board supports this compensation plan”argued the board of directors of the American automaker in preparatory documents published Wednesday. “We believed in it in 2018, asking Elon to pursue remarkable goals to grow the company. You, as shareholders, also believed in 2018 when you overwhelmingly approved it. Time and results have only demonstrated the wisdom of our judgment.”

A controversial amount

However, this staggering amount is far from pleasing all shareholders. At the end of January, the judge of a court in the state of Delaware, in the eastern United States, ruled in favor of one of them, who demanded the cancellation of the plan. The judge considered that the shareholders had received information “erroneous” And “misleading” regarding the board of directors and the remuneration committee, ahead of the general meeting during which the plan was approved.

A judgment that the Tesla board of directors regrets. In the preparatory documents published on Wednesday, the latter writes in particular that the company “would not be where it is today without Mr. Musk’s contributions, leadership and vision”.

The company also reversed the elimination of 10% of its global workforce, or at least 14,000 employees, announced earlier this week. According to her, the measure is justified by the needs of “reducing costs and improving productivity”. “Over the years we have had rapid growth with multiple factories around the world”which led to “a duplication of roles and functions in certain places”.