① Tesla The annual shareholder meeting will vote on Musk's trillion-dollar compensation package, and Tesla shareholders currently have very differing opinions on this issue; ② Tesla's board of directors previously warned that Musk might leave the company if he is not offered more compensation and control; ③ In addition, Tesla... The shareholders' meeting will also discuss the re-election of board members and whether to invest in Musk's artificial intelligence . xAI, a startup company.
Tesla will hold its annual shareholder meeting on Thursday, a meeting that is attracting much attention because it will vote on Elon Musk's trillion-dollar compensation package.
According to Tesla's official website, the company's annual shareholder meeting will begin at 3 p.m. Central Time on Thursday, which is equivalent to 5 a.m. Beijing Time on Friday.
This week, Norway's sovereign wealth fund, which holds a 1.2% stake in Tesla, expressed its opposition to offering CEO Elon Musk a massive compensation package, exacerbating the divisions within Tesla. Tesla's board had previously warned that Musk might leave the company if he wasn't offered more compensation and control of Tesla.
According to a proposal from Tesla's board of directors, if Tesla's market capitalization reaches a certain threshold, Musk will be granted 12 tranches of massive stock options, potentially worth up to $1 trillion. This would give Musk approximately 25% of Tesla's shares, granting him greater influence.
Some shareholders have stated that Musk's compensation package grants him too much influence within the company and may also raise nepotism issues, as many directors on Tesla's board have close ties to Musk. This could lead to the board granting him stock even when he has not met certain criteria.
This could also lead to the second key topic of this year's shareholder meeting: the re-election of Tesla's board members.
This year, venture capitalist Ira Ehrenpreis, veteran human resources executive Kathleen Wilson-Thompson, and audit committee member Joe Gebbia will all face re-election votes. Glass Lewis, an firm opposed to Musk's massive compensation package, is urging investors to support Gebbia, but not Ehrenpreis or Wilson-Thompson.
One reason for the opposition to the board members is that some are too close to Musk, and another is that these directors are also receiving excessive compensation. Earlier this year, Tesla directors were forced to return $919 million in compensation.
In addition to personnel issues, Tesla shareholders faced another thorny question on Thursday: whether to invest in xAI?
xAI is an artificial intelligence startup founded by Elon Musk, which developed the Grok chatbot. This technology is also being used on his social media platform, xAI. xAI is also considered one of Silicon Valley's leading AI developers, having raised significant funding this year to build its large data center. .
Grok has already been integrated into Tesla's electric vehicle product line. Earlier, investors inquired whether Tesla would establish a partnership with xAI, including equity, but Musk believed that Tesla investing in xAI would be more feasible.
Glass Lewis advised shareholders to vote against the proposal, not because the firm thought the investment was a bad idea, but because the decision should not be left to the shareholders.
Furthermore, some have pointed out that this deal exacerbates the financial complexity of Musk's companies. However, Musk has threatened that if he cannot acquire more Tesla shares, he will lose interest in Tesla and focus entirely on xAI.
(Article source: CLS)
