Tesla is reportedly asking its shareholders to reapprove CEO Elon Musk's $56 billion pay, one of the highest compensation packages in corporate history. In January, a Delaware judge dismissed the pay deal, citing it as 'an unfathomable sum.'
In a memo to his staff, Elon Musk admitted there was nothing he hated more but justified the importance of the proposed salary figure, stating, 'it must be done.' Despite the absence of a salary or bonus in the package, Musk's remuneration has touched a record-breaking number. According to a report by BBC, the ruling by Judge Kathaleen McCormick in Delaware said the pay deal was unfair to shareholders.
This news comes at a time when the luxury automobile firm has slashed the jobs of nearly 10 per cent of its workforce. Tesla's sales figures continue to be under pressure as it faces tough competition from global players alongside a cooling demand for EVs.
On the other hand, the chairman of the company's board, Robyn Denholm, defended the proposed compensation figure. He stated in an exchange filing, "Elon has not been paid for any of his work for Tesla for the past six years... That strikes us, and the many stockholders from whom we already have heard, as fundamentally unfair."
"We do not think that what the Delaware Court said is how corporate law should or does work," he further added.
In 2023, an exchange filing revealed that Elon Musk's compensation for that year stood at $0, as the billionaire opted not to take a salary from the company. Instead, he is remunerated through stock options.
