The board of Tesla Inc. TSLA is struggling to maintain CEO Elon Musk’s total commitment while he manages multiple ventures. It is attempting to reinstate Musk’s record multibillion-dollar compensation package from 2018, which a Delaware judge overturned.
What Happened: Tesla Chair Robyn Denholm is trying to persuade shareholders to re-approve the record compensation package offered to Musk six years ago.
The package, now rescinded, was initially structured to ensure Musk’s full commitment as Tesla’s CEO.
Denholm is also working to convince shareholders that the compensation package, with its holding requirements, incentivizes Musk to continue propelling Tesla’s growth, reported The Wall Street Journal.Â
However, the vote could also be interpreted as a measure of Tesla’s dependency on Musk, particularly when he is not entirely devoted to the electric car manufacturer.
Musk, managing six companies, has become increasingly involved…
