Tesla reconsiders Elon Musk’s billionaire salary amid falling sales and internal challenges (X @MarioNawfal)
Tesla has formed a special committee to reassess Elon Musk’s compensation package after his 2018 pay agreement was annulled by a court in Delaware, United States.
The original package included about $56 billion in stock, but it was deemed excessive and approved under Musk’s own influence. The company is now seeking a new proposal, which may include compensation for past performance if the Delaware Supreme Court does not reinstate the previous deal.
This review process comes as Tesla faces several challenges, including declining electric vehicle sales, criticism of Musk’s political involvement, and pressure from investors. The CEO has previously stated that he may leave the company if not granted more control, increasing tension between him and the board of directors. The situation is further complicated by Musk’s close ties to some board members, with some having already returned profits considered excessive.
To address the issue, Tesla has postponed its annual shareholder meeting, giving the committee more time to present a new compensation proposal, which will be submitted for shareholder vote.
The company has also shifted to operating under Texas law and hired a new local legal firm to reinforce the legality and transparency of the process amid ongoing controversy.
Source: Olhar Digital | Photo: X @MarioNawfal | This content was created with the help of AI and reviewed by the editorial team
