Tesla Pushes for $56B Pay Deal for Elon Musk
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The Facts
Tesla requested its shareholders to accept awarding CEO Elon Musk with the largest compensation package in American corporate history, estimated to be worth $56 billion. In January, a US judge rejected the offer, calling it "an unfathomable sum."
Musk's pay package comes only days after he revealed his intentions to reduce more than 10% of his global workforce. In a memo to his staff, Musk expressed his deepest distaste yet emphasized the necessity of this compensation. Tesla requested its shareholders to accept awarding CEO Elon Musk with the largest compensation package in American corporate history, estimated to be worth $56B. In January, a US judge rejected the offer, calling it "an unfathomable sum."
The Spin
Nobody works for nothing, so why should Elon Musk? Tesla has not paid Mr Musk since 2018. That's six years without compensation as the electric car firm has broken record after record and is now the world's most valuable corporation. It is only reasonable that the CEO gets compensated in proportion to the company's performance.
They say that timing is everything. In this aspect, the struggling EV carmaker failed miserably when it asked shareholders for a record payout to Elon Musk, the company's billionaire CEO. The suggestion comes just days after Musk announced Tesla will cut 10% of its global workforce, and Tesla stock has fallen 37% this year. Awarding Musk this much money is not sound; it is excessive even for Musk.
