Tesla Investors Demand Board Changes Over Elon Musk's $1T Compensation
Tesla faces investor backlash over Elon Musk's potential $1 trillion compensation package. Shareholders, including US state pension funds, demand the removal of three board members and a vote against the new deal.
An influential group of Tesla investors, led by SOC Investment Group, has written an open letter criticizing the company's board for its lack of oversight. This has led to a decline in company performance and excessive executive compensation, with Elon Musk's potential package valued at $1 trillion.
The letter also highlights Tesla's decreasing sales and market share, as well as significant profit drops in recent years. Investors accuse the board of being compromised and biased due to close ties with Musk. They argue that the '2025 CEO Performance Award' has vague and lenient targets, subject to the discretion of this biased board.
Moreover, investors criticize Musk's side projects and potential misuse of Tesla resources. If all targets are met, Musk's voting stake could rise from 13.6% to up to 28.8%, diluting existing shareholders' influence. The group demands the removal of directors Ira Ehrenpreis, Kathleen Wilson-Thompson, and Joe Gebbia.
The investors' open letter calls for shareholders to vote against Musk's new compensation package. They aim to hold the board accountable for its lack of oversight and to prevent further dilution of shareholders' influence.
