Tesla shareholder group targets ‘distracted’ Elon Musk, slams $56 billion pay

  • Is Elon Musk too distracted to focus on Tesla like he did before?
Elon Musk
Elon Musk is one of the wealthiest persons on the planet. But being at the helm of as many as six companies may be taking a toll on efficiency. (Getty Images via AFP)
Elon Musk
Elon Musk is one of the wealthiest persons on the planet. But being at the helm of as many as six companies may be taking a toll on efficiency.

A group of Tesla shareholders are displeased with CEO Elon Musk and have reportedly urged other shareholders to disapprove a mammoth $56 billion pay package for the maverick but eccentric businessman. Accusing Musk of being distracted, the group has even said he is not serving the best interest of Tesla.

Musk is at the helm of as many as six companies - EV-maker Tesla, social-media company X, rocket-making SpaceX, tunnel-creating startup Boring Company, neurotechnology company Neuralink and AI company xAI. He is one of the world's wealthiest persons but is often accused of having taken too much on his plate. The concerns over at Tesla are possibly the loudest because the rise in electric vehicle (EV) sales have tapered in recent months.

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The group of Tesla shareholders which has targted Musk is clearly not too pleased with him at present. ““Tesla is suffering from a material governance failure which requires our urgent attention and action," the group wrote in a letter, as per Bloomberg. "Even as Tesla’s performance is floundering, the board has yet to ensure that Tesla has a full-time CEO who is adequately focused on the long-term sustainable success of our company." The group is also asking other shareholders to move against the decision to re-elect Tesla directors Kimbal Musk - Elon's brother, and James Murdoch.

Tesla in trouble but money matters

Musk is believed to be worth approximately $194.9 billion, as per Forbes, and is currently third on the list of the most wealthiest persons on the planet. Only Bernard Arnault and Jeff Bezos are ahead of him at present.

But Musk's fortunes are gradually receiving some very severe criticism as Tesla has been going out and about cutting jobs. Musk has said he plans to cut around 10 per cent of overall Tesla jobs the world over and the layoffs are expected to continue till June. The decision is stemming from the fact that sales growth isn't taking the upward direction for EV makers that was previously predicted.

But for the Tesla CEO though, personal fortunes remain solid. His pay package was initially approved in 2018 but the Tesla board is putting this to vote for a second time now.

First Published Date: 21 May 2024, 13:55 PM IST
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