Elon Musk, CEO of Tesla and owner of social media site X, recently attended the Viva Technology conference dedicated to innovation and startups in Paris, France. However, news regarding his pay package has stirred controversy. The head of California State Teachers’ Retirement System, Chris Ailman, announced that the fund is voting against Musk’s revised pay package, which consists of performance-based stock options worth approximately $50 billion. Ailman stated that the pay package is excessive and unfair, as it would result in Musk being paid 140 times the average worker’s salary.
CalSTRS, which owns nearly 4.7 million shares of Tesla, has opposed Musk’s pay package in the past and will continue to do so. Norway’s sovereign wealth fund has also expressed opposition. Ailman believes that Tesla’s valuation is too high and the stock is overvalued, even if the company’s cars were equipped with AI technology. He emphasized the importance of professional managers handling more day-to-day operations at Tesla to ensure its success, as Musk is involved in multiple projects such as X and SpaceX.
Despite the criticism, Musk remains committed to his various ventures, including Tesla, X, and SpaceX. However, he has hinted that he may shift his focus to other projects if his pay package is rejected. Ailman expressed concern about Musk potentially stepping away from Tesla entirely, emphasizing that Musk’s passion lies in projects like space exploration. CalSTRS, which manages over $333 billion in assets, does not plan to sell its Tesla shares but remains opposed to Musk’s excessive pay package.
The controversy surrounding Elon Musk’s pay package highlights the concerns of major shareholders like CalSTRS and Norway’s sovereign wealth fund. While Musk continues to lead multiple successful companies, the issue has sparked a debate over executive compensation and corporate governance. As the vote on Musk’s pay package approaches, it remains to be seen how this will impact his role at Tesla and his other ventures.
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