Tesla's $1 Trillion Pay Package for CEO Elon Musk: A Controversial Approval
Tesla Shareholders Approve Musk's Pay Package
Tesla shareholders on Thursday approved a new pay package for CEO Elon Musk that could be valued at up to $1 trillion over ten years. This decision was met with criticism from major investors concerned about the compensation's magnitude.
Performance Goals and Controversies
The compensation package, one of the most substantial in corporate history, hinges on Tesla achieving specific performance goals during Musk's tenure. Successful targets could make him the world's first trillionaire, given his current net worth of $437 billion.
- Norway’s sovereign wealth fund voted against the pay package.
- Investment advisory firms Glass Lewis and ISS recommended shareholders reject it.
Market Impact and Sales Challenges
The timing of this vote is critical, as Tesla's sales have tumbled recently, partly due to Musk's controversial actions during the Trump Administration's Department of Government Efficiency, disproportionately affecting consumer perception and sales.
Although facing backlash, Wall Street analyst Dan Ives from Wedbush Securities indicates that this generous pay package is crucial for ensuring Musk's dedication to Tesla.
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