Tesla Faces Crucial Vote on Elon Musk‘s $878 Billion Pay Package
Jakarta, CNN indonesia — Tesla is facing a pivotal decision this week: whether to approve CEO Elon Musk’s stock compensation package, valued at up to US$878 billion (approximately Rp. 14,679.10 trillion, based on an exchange rate of Rp. 16,711 per US dollar), or risk Musk’s departure and a potential plunge in the company’s share price.
The shareholder vote is scheduled for Thursday (November 6th) local time and is being called one of the biggest bets in the history of technology companies.
Tesla’s board of directors is urging shareholders to support the massive compensation, arguing that only Musk can realize the company’s ambitious goals of becoming a leader in artificial intelligence, humanoid robots, and robotaxi services.
If Musk meets all targets within 10 years, Tesla’s value is projected to reach US$8.5 trillion (IDR 142,035 trillion), with Musk controlling roughly a quarter of the company’s shares.
Some investors are supportive. “If Tesla shares jump sixfold,I will also profit,” said Nancy Tengler,CEO of Laffer Tengler Investments. “Why worry about how much money he gets if his vision really comes true?” Tengler added.
However, several large shareholders and governance experts view the compensation package as excessively risky.They argue that the Tesla board is overly reliant on a single individual, creating a potential conflict of interest and further solidifying Musk’s power.
The California Public Employees’ Retirement System and Norway’s sovereign wealth fund are among those opposing the plan,believing it could negatively impact shareholder value and increase the company’s dependence on one person.
Musk has indicated he might shift his focus to othre ventures,such as SpaceX,xAI,and Neuralink,if the compensation package is not approved. Tesla Board Chair Robyn