Not all shareholders happy with Elon Musk’s ‘monster bonus’
Two major shareholders interest groups are opposed to Tesla’s CEO Elon Musk’s proposed ‘monster bonus’ of 2,6 billion dollar in shares on top of the 20% he owns already. “Even if he reaches the highest targets set, this is out of proportion”, the Institutional Shareholder Services (ISS) says.
Big boss for ten years
Elon Musk (46), founder and CEO of Tesla has negotiated a new salary package for himself with the company. He won’t get any salary or cash bonuses yearly, but will stay on as big boss for at least 10 years.
He will be rewarded 600.000 million dollar in stock options (1% of the actual stock exchange value of Tesla) if the company’s value exceeds 100 billion dollar. And this every time the value rises with 50 billion dollar until the ultimate goal of 650 billion dollar is reached.
No profits yet
Tesla has not made any profit so far, since the beginning of its activities, and it is to survive on money raised with moneylenders and shareholders. But Musk manages to make the value of his company soar beyond major US car makers, based on his charisma and daring views.
The ISS represents too few shareholders to block the vote at the shareholders meeting. But it has the support of Glass Lewis & Co, specialist in advising shareholders how to vote. Two of Tesla’s major shareholders, Baillie Gifford & Co. and T. Rowe Price Group, who own 14% of shares, already said they will vote in favour of the bonus.