Some investors and regulators express concerns about Musk’s divided focus and the use of the company’s resources while managing SpaceX, Neuralink, and other projects alongside Tesla. This is in addition to his politically and culturally divisive comments, including recent tweets challenging institutional diversity and inclusion initiatives, ongoing federal investigations related to Musk and Tesla, and concerns about the CEO’s drug use, as reported by The Wall Street Journal recently.
Musk is also currently involved in a trial in Delaware regarding his previous compensation package of $56 billion from Tesla. The unprecedented 2018 CEO compensation plan made him one of the wealthiest individuals on the planet.
Shareholder Richard J. Tornetta filed a lawsuit against Musk and Tesla, alleging that the CEO’s compensation was excessive, and his delegation amounted to a breach of fiduciary duty by Tesla and its board.
Musk also pointed out that Tesla’s board is awaiting the resolution of his compensation case before crafting a new compensation plan for him. He stated, “The reason there is no new compensation plan is that we are still waiting for a decision in my Delaware compensation case. The trial for this took place in 2022, but a judgment has not been issued yet.”
Referring to his call for a 25% voting control, Musk stated, “If I have 25%, that means I’m influential, but it can be overridden if less than double the number of shareholders vote against me compared to those voting for me.”
With a 15% or lower stake, the affirmative or negative vote ratio makes the acquisition process through questionable interests much more straightforward.
In a previous trial in Delaware, several members of Tesla’s board agreed last year to pay $735 million to settle a lawsuit about their compensation.
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