The billionaire himself voted in favor of the package that will benefit him in the long term; For him to receive the bonus, the majority of shareholders with voting power had to agree
Investors at , an electric car company, voted this Thursday (6) for a package to make the richest man in the world even more of a billionaire. The bonus agreement, which provides for around US$1 trillion in payments to Musk, was approved by a majority among shareholders – more than 75% of the votes.
The billionaire himself voted in favor of the package that will benefit him in the long term. For Musk to receive the bonus, the majority of shareholders with voting power needed to agree with the proposal.
In addition to the bonus, the favorable vote ensured that Musk increased his stake in Tesla shares – from 15% to almost 30%. The move was one of the billionaire’s maneuvers to ensure greater control of the company, as he is betting on the development of robots and autonomous cars as one of the most successful sources in the future. About 30 minutes before the start of the meeting that decided in favor of Musk’s bonus, Tesla shares fell by around 3% on the American stock market.
To receive full payment, Musk needs to meet a series of goals, such as delivering 20 million Teslas to the automotive market in 10 years, more than double the number he produced in the last twelve years. He also needs to significantly increase the company’s market value and operating profits, in addition to delivering a million robots, starting from the current zero.
But even if he doesn’t achieve these goals, the billionaire could still walk away with a hefty sum from the deal. Musk will receive $50 billion in additional Tesla shares, for example, if he increases the company’s market value by 80%, which he did last year, as well as doubling vehicle sales and tripling operating profits — or achieving any other two of a dozen operating goals.
Several pension funds have spoken out against the package, arguing that the board of directors is very grateful to Musk, but that his behavior has been very reckless lately and that the bonuses offered are excessive.
The billionaire’s defenders say Musk is a “genius,” the only person capable of ushering in a future dominated by Tesla, in which hundreds of thousands of Tesla’s self-driving cars will transport people and humanoid robots will roam factories and homes, carrying boxes and watering plants. Payment is necessary to incentivize you, they say.
Shareholders became aware of the salary package in September, when the board of directors proposed it in a detailed document presented to financial market regulators.
*With information from Estadão Conteúdo
Published by Nátaly Tenório
