Tesla chairman responds to Musk’s sky-high $56 billion salary, what he deserves

Tesla (TSLA-US) faces an uphill battle to get Elon Musk\’s record $56 billion compensation package approved, Chairman Robyn Denholm said.

Tesla (TSLA-US) Chairman Robyn Denholm said Tesla faces an uphill battle to get Elon Musk\’s record $56 billion compensation package approved.
She told the Financial Times that getting the votes needed to approve Musk\’s salary and move his legal entity to Texas would be like climbing \”Mount Everest.\”
“It’s a big mountain to climb because it’s very difficult to get 50% of shareholders to vote let alone what to say about the vote.
Denholm said.
Tesla has been seeking shareholder approval of Musk\’s $56 billion compensation plan but it was blocked by a Delaware judge earlier this year.
The judge claimed that Musk\’s undue influence on Tesla\’s board of directors resulted in \”unfair prices\” due to his close relationship with several directors.
After the plan was rejected, Musk vowed to take Tesla out of Delaware.
He announced that he would move SpaceX to Texas and posted on social media: \”If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible.
Denholm has previously called Musk\’s planned compensation package \”critical to Tesla\’s future success.\”
Asked whether Musk would leave Tesla if the planned compensation was not approved, she said: \”There\’s always a risk but he\’s not going to put a gun to anyone\’s head.
Tesla’s board of directors has been trying to appeal the judge’s decision and get the compensation plan passed, even paying for advertising to call on investors to vote for the compensation plan.
In February this year, a Delaware judge questioned the independence of Tesla\’s board of directors and said that \”Musk\’s behavior does not appear to have been effectively supervised by the board of directors.\”
The ruling also noted that some directors, including Murdoch, vacationed with Musk and private equity veteran Antonio Gracias, who left the board in 2021, owns more than $1 billion in companies controlled by Musk. rights and interests.
Denholm firmly refutes these doubts.
\”The board has been very diligent and efficient in ensuring that the management team is doing its job,\” she said.
Each member invested a significant amount of time and effort, working closely not only with Musk but with the rest of the management team.
The judge also singled out Denholm herself for noting that she had made a huge fortune from Tesla stock and accusing her of \”laxity in her regulatory obligations.\”
Denholm denied this, saying: \”This is just ridiculous! I\’m going to tell you that anyone who knows me knows that I\’m no slouch.
Now I understand the true meaning of the word \”lazy\”.
She also dismissed criticism of her stock awards for the same reason she defended Musk\’s pay: Her shares grew in tandem with the company\’s stock price, which is good for all shareholders.
For Denholm, these life-changing fortunes only added to her independence.
\”If I disagree with what\’s going on in the company, I can leave at any time,\” she said.
Selling stocks will make you more financially independent.
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