The Future Fund LLC Managing Partner and investor Gary Black expressed strong support for Elon Musk‘s 2018 compensation package and warned that voting against it could have significant repercussions for Tesla Inc. TSLA.
What Happened: Black emphasized that rejecting Musk’s compensation package in the 2024 proxy vote will lead to a “fair chance” of Musk leaving Tesla or focusing his efforts on other ventures like xAI.
“Without Elon’s leadership, many of Tesla’s most talented engineers will leave, and efforts to get to unsupervised autonomy before competitors will stall or worse may fail,” Black added.
Black’s post was in response to the news that Marcie Frost, CEO of CalPERS, would vote against Musk’s compensation package, despite having supported it in 2018.
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“Every TSLA institutional shareholder who wants $TSLA stock to go higher should vote FOR Elon’s 2018 pay package (Proposal #4) in this year’s proxy,” he said.
Why It Matters: Musk’s 2018 pay package was overturned by a Delaware court earlier this year, calling it an “unfathomable sum.” Tesla’s board is attempting to reinstate it through a shareholder vote in June.
The debate over Musk’s compensation package has been a contentious issue. Recently, Musk criticized CalPERS for their decision to vote against the package, stating that “CalPERS broke the deal.”
Critics argue that Musk’s 2018 compensation package, valued at $56 billion, is excessive and that Tesla needs a full-time CEO focused on the company’s operations.
Legal experts have also weighed in, suggesting that Tesla cannot simply grant Musk a new pay package due to the unique circumstances of the 2018 agreement.
Price Action: On Wednesday, Tesla’s stock closed at $176.19. The stock’s 52-week high is $299.29, and its 52-week low is $138.80, according to Benzinga Pro.
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
