₦airaland Forum

Tesla shareholders have approved a $1 trillion compensation package for chief executive Elon Musk, the largest payout awarded to a corporate leader.

More than 75 per cent of the votes cast were in favour of the pay plan, the company said on Thursday at its annual meeting. The outcome caps a weeks-long campaign by the electric vehicle maker’s board, its chief executive and prominent retail investors to build support.

The pay agreement clears a path for Mr Musk, the world’s richest person, to become the first trillionaire and expand his stake in Tesla to 25 per cent or more over the next decade. To achieve the full payout, he would have to deliver on targets to significantly expand Tesla’s market value, revive its flagging car business and get the fledgling robotaxi and Optimus robotics efforts off the ground.

“It’s not just a new chapter for Tesla, it’s a new book,” Mr Musk said at the shareholder meeting, wearing a black Tesla jacket as he strode the stage in front of a cheering crowd. “And that new book is massively increasing vehicle production and ramping up Optimus production faster than anything’s ever been ramped up before in human history.”

The compensation vote was pivotal for Tesla, after Mr Musk suggested he could step down or spend more time with his other companies if he didn’t get greater control over the car maker. He’s now expected to remain at the helm as Tesla pursues an ambitious agenda built around driverless vehicles and artificial intelligence.

Tesla shares were up less than 1 per cent as of 7.16pm in postmarket trading on Thursday in New York, paring an earlier gain of as much as 3.4 per cent. The stock was up 10 per cent this year through Thursday’s close, narrowly trailing the 14 per cent advance in the S&P 500 Index.

The chief executive, who has led the EV maker since 2008, said that Tesla might end up building a chip factory to get the volume it needs, even as the company works with established suppliers such as Samsung and TSMC.

“Even when we extrapolate the best-case scenario for chip production from our suppliers, it’s still not enough,” Mr Musk said. “So I think we may have to do a Tesla terafab. It’s like giga but way bigger.”

He said next year will focus on Optimus, the Semi truck and the Cybercab. Mr Musk expects production of Cybercab will be roughly in line with regulatory approval. “I’d like to thank Waymo for paving the path here. It’s very helpful,” he added.

Mr Musk said Tesla has aspirational goals to boost vehicle production volume by about 50 per cent by the end of next year.

Aggressive effort

The pay package was widely expected to pass, even after several prominent investors came out in opposition, including Norway’s Norges Bank Investment Management, Tesla’s ninth-largest holder. Proxy advisers Institutional Shareholder Services and Glass Lewis recommended investors reject the compensation plan, citing concerns with its magnitude and its potential to dilute other shareholders’ ownership.

The board waged an aggressive effort to garner support, featuring meetings with large institutional shareholders and a series of media appearances by chair Robyn Denholm. In interviews with Bloomberg News, Ms Denholm cast the vote as crucial to Tesla’s future, which needs an engaged Mr Musk to achieve its goals.

Mr Musk himself sought to rally support, using a portion of Tesla’s recent earnings call to lay out why he wasn’t comfortable building a “robot army” unless he owns a quarter of the company.

Schwab Asset Management this week pledged to back the pay proposal after several prominent retail shareholders said on social media that they would move funds out of brokerages that voted in opposition. Several other institutional investors, including Florida’s State Board of Administration, said they would vote for the package.

“Even with the new pay package, there are significant hurdles” to unlocking the payout, including profitably scaling Tesla’s operations and delivering many robots and robotaxis, said Wedbush Securities analyst Dan Ives, a longtime Tesla bull. “Now it’s about driving the most important chapter in Tesla’s history with an autonomous future ahead.”

The win gives Mr Musk a clear, albeit challenging, path to becoming the world’s first trillionaire. Should he hit all of the targets in the plan, including expanding Tesla’s market value to $8.5 trillion, his total stake in the car maker would be worth roughly $2.4 trillion.

That’s more than quintuple his current net worth of about $460 billion, according to the Bloomberg Billionaires Index. His net worth would exceed the current gross domestic product of all but seven countries.

Roller coaster

Mr Musk’s fortune has been on a roller coaster ride this year. It stood at roughly $450 billion in January when he joined US President Donald Trump at his inauguration, but began a rapid decline as the chief executive's politics — including a prominent role at the Department of Government Efficiency — alienated many potential Tesla buyers. A subsequent feud between the two sent Tesla shares plummeting, leaving Mr Musk with the second-worst single-day loss ever recorded by the Bloomberg Billionaires Index.

His wealth has since rebounded, helped by a recovery in Tesla shares as well as booming valuations for his privately held businesses, including xAI and SpaceX.

The new package drew pushback from some of his longtime critics, including New York state comptroller Thomas DiNapoli, who said on Thursday that this was “pay for unchecked power, not pay for performance”.

Vermont senator Bernie Sanders called the plan “totally absurd".

“People can’t afford their rent, can’t afford health, can’t afford groceries, they can’t afford to retire with dignity,” Mr Sanders told reporters. “And we’re talking about one guy who already owns more wealth than the bottom 52 per cent of American households getting even richer.”

The package comes after Mr Musk’s previous multibillion-dollar compensation plan was struck down by a Delaware judge last year. The company is appealing the ruling and has moved its incorporation to Texas, partly in response to the decision. In August, Tesla’s board also granted Mr Musk an interim award valued at $30 billion, designed to partially replace the payment.

Tesla said on Thursday that it needs time to review the votes for a nonbinding shareholder proposal to invest in xAI, Mr Musk’s artificial intelligence start-up. Of the votes submitted, more were cast in favour of the plan than against it, but the volume of abstentions was so high that it merited further discussion, Tesla said.

The measure, calling for an investment “in an amount and form deemed appropriate by the board,” is advisory, meaning Tesla is not required to move ahead. Mr Musk has been publicly supportive of an investment and floated the idea of a $5 billion stake last year.

muyico:
Where this man dey get all this money??

muyico:
Where this man dey get all this money??

chisomkachy:
Nigerian President Bola Tinubu’s first supplementary budget includes a fleet of SUVs for himself and his wife, a presidential yacht and the renovation of his villa amid a cost-of-living crisis for some of the poorest people in the world.

The proposal — which seeks additional funding beyond the annual budget approved by Tinubu’s predecessor — comes as the government asks Nigerians to persevere through pain caused in part by a raft of economic reforms ushered in by the new president. Africa’s most populous country faces rampant unemployment, soaring food prices and a plummeting currency.

Federal lawmakers approved the president’s request for extra spending on Thursday, but eliminated the provision of 5 billion naira ($6.01 million) to buy a presidential yacht. Instead, they doubled the allocation to a student loan fund to 10 billion naira, according Abubakar Bichi, chairman of an appropriations committee in the House of Representatives.

The lawmakers approved 1.5 billion-naira proposed to purchase SUVs for the office of First Lady Oluremi Tinubu — an amount larger than that allocated to many individual federal colleges. The supplementary budget also proposes almost 6 billion naira to purchase SUVs for the presidency — more than the amount initially allocated to fund a student loan program for poor families.


https://www.bloomberg.com/news/articles/2023-11-02/nigeria-budgets-for-suvs-and-yachts-amid-economic-hardship

autodexter:
There are trillionaires but due to the illigalities surrounding their source of wealth it cannot be declared publicly.. well deserved Elon, congratulations

swaggerjack:
Reno Omokri: I Challenge Tinubu To Prove If He Was Not A Drug Lord In Chicago




https://www.youtube.com/watch?v=7DLrnL6rQ6M?si=uMMUVFfetODTr4Fw

bassdow:
and some people go think say na just by only merit

bassdow:
the kind board room politics wey go dey involve no go be small

Sonnobax15:

Na inside this life heaven dey...

Mehnnn,see money wey only one person wan receive . E just be like say some people just escort other people come this life, just to watch Dem as Dem dey flex and enjoy their lives..

Life just too dey unfair to some of us

Vifx:
Tesla board is more focused on the CEO rather than the shareholders.....
Tesla has not released any innovative new product in decades
Except for the commercial flop that is The Cybertruck

bassdow:
and some people go think say na just by only merit

autodexter:
There are trillionaires but due to the illigalities surrounding their source of wealth it cannot be declared publicly.. well deserved Elon, congratulations

autodexter:
There are trillionaires but due to the illigalities surrounding their source of wealth it cannot be declared publicly.. well deserved Elon, congratulations

fabuloz1:
Oga, there's no one individual that's a trillionaire anywhere in the world no matter how corrupt you are. Do you know what it means to have trillions of $ sitting in your account Some companies are worth that amount but not physical cash. We are talking about an individual having physical cash pay check of trillion $ for the first time ever.
Now, imagine he was being paid that amount. It will amount to $1 trillion + his current worth of over $500B. That's a net worth of $1.5T for an individual alone. This man is richer than countries put together