(New York) The car manufacturer Tesla will once again submit to its shareholders, at its next general meeting in June, the enormous remuneration plan of its boss Elon Musk, which a Delaware judge had canceled at the end of January.
“The board supports this compensation plan. We believed in it in 2018, asking Elon to pursue remarkable goals to grow the company. You, as shareholders, also believed in it in 2018 when you overwhelmingly approved it. Time and results have only demonstrated the wisdom of our judgment,” argued the board of directors of the American automaker in preparatory documents published Wednesday.
This is a new twist in a long-standing conflict on this plan, authorized by the board of directors of the car manufacturer in 2018.
He planned to give Elon Musk Tesla shares based on the achievement of several goals over ten years. It was estimated at $56 billion when it was adopted.
A staggering amount far from pleasing all shareholders. At the end of January, a judge in a court in the state of Delaware, in the eastern United States, ruled in favor of one of them, who demanded the cancellation of the plan.
10% of positions eliminated
The judge considered that the shareholders had received “erroneous” and “misleading” information about the board of directors and the remuneration committee, ahead of the general meeting during which the plan was approved.
A judgment that the Tesla board of directors regrets. In the preparatory documents published Wednesday, the latter writes in particular that the company “would not be where it is today without the contributions, leadership and vision of Mr. Musk”.
“We believe this requires a compensation plan that recognizes Mr. Musk’s unique role and, more importantly, provides appropriate incentives for Mr. Musk to not only remain at Tesla and dedicate time to his activities and to its business, but also continues to bring the level of dedication to the business that we believe is crucial to achieving the ambition we have to grow the business over the long term,” the board continues.
He also indicated that he will also submit to a shareholder vote the transfer of Tesla’s registration from the state of Delaware to that of Texas, in accordance with what his boss had already announced.
In crusade against this American state, Elon Musk recently transferred the headquarters of another of his companies, SpaceX, from Delaware to Texas.
The company also reversed the elimination of 10% of its global workforce, or at least 14,000 employees, announced earlier this week.
The measure is justified according to her by the needs of “cost reductions and improvement of productivity”. “Over the years, we have had rapid growth with multiple factories around the world,” which has led to “duplication of roles and functions in some locations.”
reference: www.lapresse.ca