"The battle over Musk's record-setting $1 trillion pay package has escalated into one of the most high-stakes corporate showdowns in years. Tesla's chair, Robyn Denholm, warned shareholders in a letter in October that Musk could walk away from the company if they fail to approve the plan at Tesla's annual meeting next week. In her letter, Denholm said it comes down to whether shareholders still want to "retain Elon as Tesla's CEO and motivate him" to make Tesla "the leading provider of autonomous solutions and the most valuable company" in the world."
"Although Tesla shares have largely recovered from the losses experienced between March and August, and the end of the EV tax credit boosted third-quarter vehicle sales, many investors have questions regarding Musk's leadership and the company's spending on AI. From Musk's proposed $1 trillion pay package to an investment in xAI, here is what's at stake for Tesla and Musk at Thursday's shareholder meeting."
Tesla will hold its annual shareholder meeting on November 6, where investors will vote on executive compensation and governance matters. The meeting follows a year marked by political controversies and struggling vehicle sales, although shares have largely recovered and the end of the EV tax credit boosted third-quarter sales. Tesla's board excluded at least 11 shareholder proposals focused on accountability and recommended against measures seeking increased oversight. Chair Robyn Denholm warned that Musk could leave if shareholders reject the pay plan. The proposed compensation could be worth up to $1 trillion after earlier $56 billion plans were struck down, and investors are also scrutinizing spending on AI and xAI investments.
Read at Business Insider
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