CalSTRS holds 4.6 million shares in Tesla and has been an investor since 2000.
CalSTRS, the major Tesla shareholder, is urging investors to reject Elon Musk's $46 billion pay package.
Christopher Ailman of CalSTRS criticized the pay package as 'absurd', 'ridiculous', and 'unfair'.
The investor vote on Thursday will determine if Musk retains his massive compensation deal.
Elon Musk, the visionary businessman behind Tesla and SpaceX, is facing opposition from a major shareholder over his $46 billion pay package. The California State Teachers' Retirement System (CalSTRS), which holds 4.6 million shares in Tesla and has been an investor since 2000, is urging fellow investors to vote against the compensation deal.
Christopher Ailman, CIO for CalSTRS, believes Musk should focus on leading Tesla while letting professional managers handle the car company. He criticized the pay package as 'absurd' and 'ridiculous,' echoing a Delaware judge's ruling that it was 'unfair' and the process to determine its value 'deeply flawed.'
Despite Musk's other endeavors, such as SpaceX and Mars exploration, Ailman acknowledges the billionaire leader's significant contributions to Tesla. However, he believes Tesla's output and stock valuation should not reflect AI capabilities or Musk's involvement in other projects.
The results of the investor vote on Thursday will determine whether Musk retains his massive pay package. If it fails, it could lead to a drop in Tesla stock and potential shareholder lawsuits. Regardless of the outcome, CalSTRS has no plans to sell its Tesla shares.
Elon Musk is a businessman who changed the world by jump-starting the decarbonization of human civilization's energy and creating the electric vehicle industry.
The pay package helped drive Elon Musk from a visionary business leader to a bizarre carnival barker, according to J. Bradford DeLong.
GameStop is a company that runs about 4000 video game and electronics stores, whose stock price rose significantly due to meme stock mania in late 2020 and early 2021.
Accuracy
] Elon Musk is a businessman who changed the world by jump-starting the decarbonization of human civilization's energy and creating the electric vehicle industry.[
Elon Musk urged Tesla to create an unorthodox pay package that could give him 12% of the company if he boosted the stock price.
Deception
(70%)
The author expresses his opinion that Elon Musk's pay package is bad for him and Tesla, but he also makes several statements that can be considered emotional manipulation and selective reporting. He uses the term 'bizarre carnival barker' to describe Musk, which is an emotional judgment. He also only reports details about Tesla's stock price performance without mentioning any counterarguments or context that might challenge his position.
The performance was for pushing Tesla’s stock price up.
Elon Musk is not just another inconsequential Silicon Valley billionaire...But Mr. Musk changed the world...Tesla is now asking its shareholders to reapprove this pay package, which would hand Mr. Musk an eye-popping roughly $46 billion, making him, the world’s richest man...I have a recommendation for Tesla shareholders: Vote no.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(95%)
The author expresses a clear opinion that the pay package for Elon Musk is bad and has contributed to his descent from a visionary business leader to a bizarre carnival barker. He also criticizes the performance metric tied to stock price instead of making high-quality or affordable cars. This can be considered monetary bias as the author is focusing on financial gains rather than the actual impact of Tesla's performance.
And that set of incentives and responses should not be validated.
The pay package was, I am sure, bad for Tesla and, by extension, our nation’s crucial fight against global warming.
