Tesla Shareholders Vote on Elon Musk's $56 Billion Pay Package: A Referendum on Executive Compensation

Austin, Texas United States of America
Elon Musk's $56 billion Tesla pay package was re-approved by shareholders on June 13, 2024.
Musk also announced Tesla's incorporation in Texas during the annual meeting.
The pay package grants Musk stock options that vest if Tesla reaches certain sales, profits, and market value milestones.
Tesla Shareholders Vote on Elon Musk's $56 Billion Pay Package: A Referendum on Executive Compensation

Tesla Shareholders Vote on Elon Musk's Controversial $56 Billion Pay Package

Elon Musk, the CEO of Tesla, announced on June 13, 2024, that shareholders had re-approved his controversial pay package worth $56 billion in stock options. The vote came after a Delaware judge invalidated the deal earlier this year due to concerns about its fairness and Musk's involvement in its creation.

The pay package, which was approved by Tesla shareholders for the first time in 2018, granted Musk stock options that would vest if Tesla reached certain sales, profits, and market value milestones. For Musk to receive all of his options, Tesla's sales had to reach $700 billion, its profits had to exceed $15 billion annually for four consecutive years, and its market value had to surpass $650 billion.

The vote on Musk's pay package was not the only significant item on the agenda at Tesla's annual meeting. Shareholders also voted to approve Tesla's incorporation in Texas, a move that Musk announced earlier this year as part of his ongoing feud with Delaware over its business-friendly but sometimes criticized legal system.

Despite shareholder support for Musk's pay package, there are concerns about his increasing focus on ventures outside of Tesla. He recently bought Twitter for $44 billion and sold $22.9 billion of his Tesla shares to help fund the purchase.

The vote on Musk's pay package is seen as a referendum on executive compensation and the accountability of Silicon Valley billionaires. Some argue that Musk deserves every penny for his leadership role in popularizing electric vehicles and turning Tesla into the most valuable auto company in the world. Others believe that such massive pay packages create an unfair concentration of wealth and power.

The results of the vote are expected to be announced on June 15, 2024.


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Confidence

91%

Doubts
  • The fairness of the pay package creation process was previously called into question.
  • There are concerns about Musk's increasing focus on ventures outside of Tesla.

Sources

82%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Elon Musk says Tesla shareholders re-approved his pay package worth billions that a judge struck down

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Chris Isidore Thursday, 13 June 2024 10:00
  • Unique Points
    • Elon Musk announced that Tesla shareholders have re-approved his $56 billion pay package that a Delaware judge struck down earlier this year.
    • Tesla’s board stated that if the shareholders didn’t approve the pay package, the company wouldn’t receive the attention it needs from Musk as it faces several challenges including a decline in Tesla share price, falling short of sales forecasts and squeezed profits due to a global price war for EVs.
    • Despite shareholder support for Musk’s pay package, there are concerns about his increasing controversy and focus on ventures other than running Tesla. He recently bought Twitter for $44 billion and sold $22.9 billion of his Tesla shares to help fund the purchase.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (30%)
    The article contains selective reporting as it only reports details that support Musk's position and ignores the criticisms of the pay package by some major shareholders. The author also uses emotional manipulation by describing Musk as 'the ultimate 'key man'' and implying that his involvement is crucial for Tesla's success.
    • But Musk said in a tweet overnight that both measures had the support they need to pass.
    • Can Elon Musk win back his $56B pay package?
    • Without his relentless drive and uncompromising standards, there would be no Tesla.
    • The votes could still decide how much Musk wants to be involved with Tesla.
  • Fallacies (85%)
    The author makes an appeal to authority by quoting Cathie Wood and Ron Baron's statements in support of Elon Musk's pay package. However, these quotes do not directly relate to the fallacy being discussed (the validity of the shareholder vote on Musk's pay package), but rather express their opinions on Musk as a person and his contributions to Tesla. Therefore, while these quotes may be relevant to the article's content, they do not constitute a logical fallacy in themselves.
    • ][Cathie Wood]“Elon is the ultimate ‘key man,’” said Baron in a recent statement. “Without his relentless drive and uncompromising standards, there would be no Tesla.”
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Bloomberg - Are you a robot?

Bloomberg News Now Thursday, 13 June 2024 11:38
  • Unique Points
    • Elon Musk announced that Tesla shareholders have re-approved his $56 billion pay package that a Delaware judge struck down earlier this year.
    • Tesla moved to Texas is not an attempt to evade Delaware jurisdiction, according to Tesla attorneys.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Musk says his pay package is approved by Tesla shareholders

The Fixing Site: A Summary of the Article. Faiz Siddiqui, Thursday, 13 June 2024 04:00
  • Unique Points
    • Tesla shareholders re-approved Elon Musk’s 2018 pay package with a wide margin
    • Elon Musk was granted stock options as Tesla hit certain valuation milestones under the controversial pay package
    • Musk indicated that the number of votes in favor of restoring his pay had surpassed a threshold needed to guarantee a victory
    • Shareholders also approved Tesla incorporating in Texas
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tesla Shareholders to Vote on Elon Musk’s Pay Package

The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. Jack Ewing, Wednesday, 12 June 2024 16:00
  • Unique Points
    • Tesla shareholders are set to vote on Elon Musk’s compensation package worth $45 billion in stock options.
    • The judge ruled that Elon Musk had largely dictated the terms of the compensation package to a board stacked with his friends and associates.
    • For Elon Musk to receive all his options, Tesla’s sales, profits and stock market value had to reach unprecedented heights.
  • Accuracy
    • Tesla shareholders have re-approved Elon Musk's pay package worth $56 billion.
    • Elon Musk announced that Tesla shareholders have re-approved his $56 billion pay package.
    • Tesla shareholders are voting on whether Elon Musk should regain stock options worth $46.9 billion.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

78%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tesla shareholders to vote whether Elon Musk deserves billions judge struck down

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Chris Isidore Sunday, 09 June 2024 16:00
  • Unique Points
    • Tesla shareholders are voting on whether Elon Musk should regain stock options worth $46.9 billion.
    • Elon Musk became a billionaire and generated huge profits for investors under his leadership at Tesla.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (30%)
    The article contains selective reporting as it only reports details that support the author's position. The author presents Tesla's current troubles and Musk's controversial actions as reasons for shareholders to approve the pay package again. However, it fails to mention any potential negative consequences of granting Musk such a large compensation package or alternative solutions for motivating him without offering him a significant portion of the company.
    • Despite the widespread support among shareholders back in 2018 for Musk’s pay package, the Tesla board seems to be scrambling to shore-up support for this month’s vote.
    • The Tesla board is threatening if they don’t do so, they won’t get the attention they need from Musk to turn around a company facing its greatest trouble in several years.
  • Fallacies (70%)
    The article contains several examples of informal fallacies. The author presents an appeal to authority when stating Tesla's filings to shareholders and Robyn Denholm's letter as facts. There is also a false dichotomy created by the author when discussing Tesla's options: either keep the pay package in place or lose Musk's full engagement. Additionally, there are inflammatory rhetorical devices used throughout the article, particularly when discussing Elon Musk and his intentions.
    • Tesla’s stock price slid by more than half from its peak as a trillion-dollar company in late 2021.
    • Many major companies are incorporated in a different state from where their main offices are located, often in Delaware, which has a reputation for being business friendly.
    • Elon Musk: 'I'll say what I want to say' even if it means losing money
    • Under his management of Twitter, since rebranded X, he’s restored accounts for users who had been banned for hate speech, advocacy of violence or misinformation.
  • Bias (95%)
    The article provides factual information about the Tesla shareholder vote and Elon Musk's pay package. The author does not demonstrate any bias in the reporting of facts. However, there are instances where the author expresses an opinion or uses language that could be perceived as biased.
    • But part of the problem with winning support is that Musk is far more controversial than he was in 2018, and appears to be far less focused on simply running Tesla.
      • Despite the widespread support among shareholders back in 2018 for Musk’s pay package, the Tesla board seems to be scrambling to shore-up support for this month’s vote.
        • Rather, she continued, it’s about ‘what will motivate him to continue to create value for stockholders.’
          • Some high profile opponents of the deal including Institutional Shareholder Services and Glass Lewis, two firms that advise investors on how to vote on proxy proposals. Both are urging no votes on Musk’s package.
            • While Ives thinks that the pay package will again be approved by shareholders in the current vote, he said it will be a much closer vote this time.
            • Site Conflicts Of Interest (100%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (100%)
              None Found At Time Of Publication