Tesla shareholders threaten to kick Elon Musk off the company's board. On the advice of an influential financial advisor, voices are bei...
Tesla shareholders threaten to kick Elon Musk off the company's board. On the advice of an influential financial advisor, voices are being raised calling for the removal of Tesla's current CEO.
The shareholders blame the eccentric billionaire in particular for getting rich thanks to a compensation program based on the financial results of the automobile group.
Unsurprisingly, they also blame Musk for his many thoughtless tweets and his mistrust of containment measures.
In a report published on Tuesday 30 June, Pensions & Investment Research Consultants Ltd (Pirc) is openly encouraging Tesla shareholders to remove Elon Musk from the board of directors, according to The Guardian. Musk had already been forced to resign as chairman of Tesla in 2018 following accusations of fraud by the SEC, the New York Stock Exchange policeman. The man had nevertheless managed to retain his place on the board of directors and his position as CEO.
Shocking salary, thoughtless and provocative tweets...Elon Musk annoys the shareholders.
Pirc's report mainly points to its tailor-made compensation program indexed to Tesla's financial performance. In 2018, Elon Musk has indeed negotiated substantial bonus compensation. In concrete terms, the founder receives 1% Tesla shares as soon as the share price exceeds a pre-determined threshold and the group's turnover exceeds a new threshold. Thanks to this agreement, spread over 10 years, Elon Musk could earn 55.8 billion dollars. However, he does not receive any salary. "The board of directors, including CEO Elon Musk, has given himself excessive compensation," Pirc says, saying that the contract has left Musk "to get rich on the back of the company.
The consulting firm also regrets the numerous tweets published by Elon Musk. The businessman is regularly talked about for his clear-cut positions on Twitter. Tesla's founder is illustrated in particular by calling a speleologist rescuer a "paedophile".
More recently, Elon Musk has also publicly spoken out against containment measures against the coronavirus. To back up his words with deeds, he also re-launched the Tesla factory in Fremont, California, in defiance of social distancing measures.
Pirc believes that Musk's attitude and antics could "tarnish the reputation of the company and its shareholders. Shareholders will vote on the fate of Elon Musk at the next board meeting in September 2020.