San Francisco, California – Tesla’s former audit committee chair and a prominent clean technology venture investor is voicing his opposition to Elon Musk’s proposed $56 billion pay package. Steve Westly, who served on the Tesla board from 2007 to 2010, expressed concerns over the timing of Musk’s request for a substantial pay increase amidst missed quarterly numbers, slowed growth, and significant layoffs within the company.
According to Westly, a significant number of the world’s pension funds, including those in California, are likely to vote against Musk’s pay proposal. The upcoming shareholder meeting, where a decision on Musk’s compensation is set to be made, is anticipated to be high drama with many investors closely watching the outcome.
The controversy surrounding Musk’s pay package comes after a judge in January rescinded his compensation due to governance concerns. The Tesla board is now seeking shareholder ratification of the package for a second time at the upcoming annual meeting. Additionally, the board has proposed moving the company’s state of incorporation from Delaware to Texas.
Tesla’s investor base comprises large institutional investors such as The Vanguard Group and Blackrock, as well as Musk himself and a multitude of smaller retail investors. While some investors have publicly supported Musk, others, like Westly, have raised concerns about Tesla’s profitability, growth trajectory, and its ability to deliver lower-cost vehicles and full self-driving capabilities.
Despite differing opinions among investors, the ultimate decision on Musk’s pay package remains uncertain. Westly acknowledged that while it was once unimaginable for Musk to leave Tesla, the current landscape presents a more ambiguous future for the CEO.
As the discussion around Musk’s compensation continues, Tesla has not yet responded to requests for comment on the matter. For more updates on how AI is influencing the business landscape, readers can subscribe to the Eye on AI newsletter to stay informed about the evolving role of artificial intelligence.
