Former audit committee chair of Tesla and clean technology venture investor, Steve Westly, has expressed his opposition to Elon Musk’s proposed $56 billion pay package. Westly cited concerns over missed quarterly numbers, slowing growth, and layoffs as reasons for his stance. He highlighted that many pension funds, including those in California, are likely to vote against Musk’s pay proposal.
The high-stakes vote on Musk’s compensation, which was previously rescinded due to governance issues, is set to take place at Tesla’s annual shareholder meeting next week. The company is also seeking shareholder approval to move its state of incorporation from Delaware to Texas. The investor base of Tesla includes institutional giants like The Vanguard Group and Blackrock, along with Musk himself and a growing number of retail investors.
While some prominent investors like Cathie Wood have supported Musk, others, including Westly, have raised concerns about Tesla’s profitability and growth trajectory. Westly noted that the landscape has shifted since Tesla’s meteoric rise, leading shareholders to reassess their perspective on Musk’s compensation package.
The uncertainty surrounding Musk’s future at Tesla in the event of a failed proposal was also discussed, with Westly acknowledging that the situation is less clear than before. Tesla has yet to comment on the matter.
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Vocabulary List:
- Venture (noun): A risky or daring journey or undertaking.
- Compensation (noun): Somethingtypically moneyawarded to someone in recognition of losssufferingor injury.
- Institutional (adjective): Related to or characteristic of an institutionorganizationor establishment.
- Prominent (adjective): Important famous.
- Trajectory (noun): The path followed by a projectile flying or an object moving under the action of given forces.
- Meteor (noun): A small body of matter from outer space that enters the earth’s atmospherebecoming incandescent as a result of friction and appearing as a streak of light.
