Musk would really like his old pay package back, please.
Claw Back
After laying off more than ten percent of its workforce in the face of weak finances, Tesla is trying to reinstate CEO Elon Musk’s mammoth $56 billion payout.
The pay package was thrown out by a Delaware court in January after shareholders claimed it was far too much wealth — and power over the company — to award to a single individual.
Naturally, Musk was fuming following the ruling.
“Never incorporate your company in the state of Delaware,” Musk tweeted at the time.
Now, Tesla has announced that it’ll ask shareholders to reinstate the voided pay package and approve moving the company’s incorporation from Delaware to Texas, a plan Musk has hinted at for quite some time.
In short, despite Musk’s racist antics having a chilling effect on the company’s bottom line — not to mention a calamitous financial outlook — the company is hellbent on awarding the third richest man in the world one of the biggest corporate payouts in history.
Model 3antrum
After the pay package was rejected, Musk reached out to his followers, asking them in a poll whether Tesla should be incorporated in Texas instead of Delaware. Predictably, his fans voted in favor of the move.
As CNBC reports, Tesla claimed that the EV maker’s “home and future are in Texas,” arguing that 35 percent of S&P 500 companies aren’t incorporated in Delaware.
Meanwhile, Tesla has been one of the biggest losers this year in the markets, with deliveries falling quarter over quarter for the first time since the beginning of the pandemic.
The company’s stock is down a whopping 37 percent this year amid executive exits, a huge influx of competition, and the latest layoffs.
Instead of addressing these problems head-on, Tesla’s board is seemingly more focused on lining Musk’s pockets.
And that doesn’t bode well. 2024 is already turning out to be a “nightmare” year for the company — and the mercurial CEO isn’t helping the situation. Musk has long been accused of dragging down the company’s reputation, evaporating interest among potential buyers.
Put simply, is this really the time to reward him for his abhorrent behavior?
More on Tesla: Tesla Staff Didn’t Know They Were Laid Off Until They Tried to Enter the Building
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