Amid Massive Layoffs, Elon Musk Asks Tesla Shareholders To Approve Billion-Dollar Pay Package

Amid Massive Layoffs, Elon Musk Asks Tesla Shareholders To Approve Billion-Dollar Pay Package

The 2018 deal allowed Musk with the option to buy 303 million split-adjusted shares of the carmaker at the cost of USD 23.34 a share each.

Juviraj AnchilUpdated: Thursday, April 18, 2024, 12:05 PM IST
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Elon Musk | Image credit: Wikipedia

While the fortunes of the largest EV manufacturer in the world is currently located in the territory of myriad uncertainties, Elon Musk, the company boss appears to have other priorities. According to reports, Musk will ask his company shareholders to vote on the USD 50 billion (Now USD 40 billion, due reduction in value of Tesla shares ) pay package.

Unfathomable Package, Back on Table

The 2018 deal allowed Musk with the option to buy 303 million split-adjusted shares of the carmaker at the cost of USD 23.34 a share each. When the court made the decision to throw out the case, the Tesla shares prices allowed Musk with a pay pack of around USD 50 billion.

Currently, given the dramatic drop in the number of sales and the subsequent slide in the share price value over the past few quarters, the aforementioned compensation currently stands at around USD 40 billion.

This deal was thrown out by a Delaware judge, who said the deal is 'unfathomable' and 'inappropriately set'. In this matter, as though in retaliation, Musk moved the headquarters of his newest venture Neuralink from Delaware to a southern state of the US.

Pay Pack Deal Amidst Firing

These developments comes at the back of the news of Tesla firing a monumental 10 per cent of its workforce, leaving about 14,000 of its now former workers unemployed.

When it comes to his compensation or remuneration, Elon Musk does not receive a traditional salary; instead, he is compensated primarily through stock options tied to specific milestones and achievements of the company.

Tesla itself has been struggling both on the roads and on the Wall Street, as its sales dropped for the first time since the pandemic (2020). In addition, competition from BYD and other supply chain issues have been beleaguering the once shining star of the electric vehicle world.

The shares of the company are currently priced at USD 155.45, this after the shares closed the day's trade on 17 April, at the loss of a mammoth 1.06 per cent. Over the past six months alone, the company shares have lost a worrying 35.94 per cent of their value.

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