Perhaps the biggest issue on the ballot at the upcoming Tesla Shareholder Meeting is the vote to be had on CEO Elon Musk’s $56 billion pay package. One major investor says it will be voting to support it.
Tesla investor Scottish Mortgage said today that it plans to support Musk’s pay package, a major development in the fight to get the CEO paid, as the compensation was already approved years ago. However, a Delaware judge ruled earlier this year Musk’s pay package should not be given.
Scottish Mortgage first bought Tesla in June 2013, so it is a long-term believer in the company’s mission. On its website, it recognizes Musk as a “key” piece of the company’s success, noting that his expertise is “clear” and although the company is not “dependent” on him entirely, he is a major part of the business:
“Elon Musk is undoubtedly an extraordinary leader with a clear vision, notwithstanding his share of media controversies. His success has forced a response on the part of automotive incumbents and accelerated the transition to electric vehicles globally. The success of Tesla from here is not just dependent on Musk, however. The robust board around him and the dynamic individuals on the manufacturing team are also key.”
Financial Times first reported on Scottish Mortgage’s intention to support Musk’s pay package.
Tesla Pulling Out All the Stops to Get Musk Paid
Tesla has been doing whatever it can to help garner shareholder and investor support to get Musk paid. It is very evident that if Musk does not receive the pay package, the company runs the risk of losing him altogether, along with several other demands the CEO is attempting the put together.
Board members, like Robyn Denholm, have already started flying to various locations to help bolster support for Musk’s pay package. Additionally, Tesla hired a strategic advisor to help gain investor support.
There is a tremendous risk for Tesla if Musk does not get what many investors feel is owed to him. Musk’s pay package, as previously mentioned, was already approved several years ago, and it took a separate effort to get it squashed.
It is also worth mentioning that not everyone is on board with Musk getting paid.
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