In 2003 Elon Musk became CEO of tesla, a company that has earned an important position in the automotive industry related to sustainable energy. And this company set out to create innovative electric vehicles, and achieved it with models like the Model Swhich broke the mold for its performance and electrical autonomy. But not everything is golden for the company of the also CEO of SpaceX. Controversies, lawsuits for hostile working conditions, controversies on social networks and more have contributed to tarnishing the image of this Musk project.
And now is no exception. Recently, A coalition of Tesla Inc. shareholders publicly questioned their CEO's earnings, demanding a reconsideration of his terms.
How much does Elon Musk earn for being CEO at Tesla?
As executive director of the company he created, Elon Musk earns the not inconsiderable sum of 56 billion dollars. It is for this reason that the coalition, led by Amalgamated Bank and SOC Investment Groupalong with other shareholders, argue that Musk would not really be committed to Tesla due to his multiple business responsibilities.
And not only that. Besides, the group urged to vote against the re-election of two directors at the next annual shareholder meetingscheduled for this June 13, in an attempt to reform the company's leadership.
As it turned out, The controversial salary package was initially approved in 2018, and was due to Musk's compensation for increases in Tesla's market capitalization and the fulfillment of operational objectives. But despite having met those goals, a Delaware judge revoked the agreement earlier this year, alleging that shareholders had not been adequately informed about significant aspects of it.
For that reason and in response, Tesla's board of directors announced that it will seek to ratify this package again in support of investorsalthough this raises additional concerns among some shareholders regarding Musk's ability to lead the company in the long term with so many distractions, for example his acquisition of Twitter (now called X), claiming that this negatively affected Tesla's performance.
All in all, this issue arises at a fairly critical time for Tesla, a company whose sales lost momentum and whose first-quarter results were disappointing by industry standards. The Shareholders are alarmed by the lack of a CEO who focuses exclusively on the company's long-term successand they seek to solve it as soon as possible.