Tesla shareholders urged to oust Elon Musk for $ 55 billion pay deal | Business


Tesla investors urged to vote to remove Elon Musk, CEO of electric vehicle company, from company board as anger rises over bonus deal that could earn him a record $ 55 $ 8 billion (£ 40 billion).Pirc, influential shareholder advisor, including UK local government pension funds, recommended on Tuesday that investors vote against Tesla’s executive compensation package because it “unfairly enriches the CEO ”

Pirc said the deal had exposed the company to legal action, alleging that: “The board of directors, including CEO Elon Musk, has given itself excessive compensation over a three-year period that would have allowed administrators to “enrich themselves at the expense of the company”. ”

The shareholder advisor called on investors to vote against Musk’s re-election to the board due to the compensation agreement and warned that it posed “a serious risk to the reputation of the company and its shareholders ”

Pirc said Musk’s frequent controversial Twitter blasts cost Tesla millions of dollars in settlements and also posed “unnecessary corporate reputational risk”.

Tesla’s main plant in Fremont, California, where employees were scheduled to return to work despite lockout restrictions. Photography: Stephen Lam / Reuters

Musk was sued last year for $ 190 million in libel damages for derogatory tweets about British caver Vernon Unsworth, who helped rescue 13 people trapped in a Thai cave. A jury concluded that the tweets did not meet legal standards for defamation and Musk was not held responsible for the damages.

In 2018, the U.S. Securities and Exchange (SEC) regulator fined Musk and Tesla $ 20 million for CEO tweets that he planned to make the company private at a substantial premium over share price, causing the share price to soar. As part of the SEC deal, Musk was forced to step down as president of Tesla.


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