NEW DELHI:
Robyn Denholm
, the chair of Tesla's board of directors, in a recent video, called upon the company's shareholders to reapprove CEO
Elon Musk
's 2018 performance award, which was overturned by a Delaware judge following a lawsuit filed by a
Tesla
shareholder who thought the payout excessive.
Currently, Musk's
compensation package
is approximately $47 billion, primarily due to the falling share price.
However, it was earlier around $56 billion before the court ruling.
Tesla's chairman further said that votes by company's investors should be more important than on e judge's opinion. "We don't believe one judge's opinion should void the will of millions of votes cast by all of the owners of the company. So once again, we're asking you to make your voices heard by voting for the ratification of the 2018 performance award," said Denholm in the video.
Additionally, the chairman said that Musk rightfully earned the award, as shareholders had set it to motivate him to achieve "ambitious financial and operational targets," which Tesla successfully met by 2023.
She further said that under Musk's leadership, company's revenues grew from $11.8 billion to $96.8 billion, and it turned a $2.2 billion loss into a $15 billion profit. These achievements led to an increase in Tesla's value from $53.7 billion to over $790 billion.
Denholm further said that company's stockholders also got good return on their investment, with the value of their shares increasing by 1,100%. Tesla's annual 2024 shareholder meeting is scheduled for June 13, 2024, at 3:30 p.m. central time.
“We are asking your voices to be heard and to vote for these proposals.” said Denholm.
Additionally, Tesla has filed a proxy statement with the Securities and Exchange Commission, announcing its intention to hold another
shareholder vote
on Musk's substantial compensation package, which includes stock options.
The company's leadership thinks that Musk has not been adequately compensated for his contributions to Tesla over the past six years.
Currently, as per Forbes' billionaire index, Musk is ranked the second richest person in the world with a net worth of $195 billion.
