Tesla's Board Continues Remunerating Musk
In a move that has been described as a blend of servility and desperation, Elon Musk, the brand, prophet, and demiurge, has been granted 96 million shares by Tesla's Board of Directors, worth approximately $30 billion.
The news of this share grant was reported by the Financial Times, who also noted that this decision could be seen as a response to Musk's threats and tweets. The Board's decision is likely due to Musk's importance to the brand and his ability to sell dreams, from colonies on Mars to self-driving cars.
The recent results of Tesla have been disappointing, and the company is not sailing in calm waters. However, the share grant is part of a strategy to increase Musk's control over Tesla and align his compensation with the company's performance and shareholder interests.
The revised $27 billion pay plan ensures Musk only benefits if Tesla achieves significant growth milestones, unlike the previous plan where he received a substantial stock portion upfront regardless of performance. This new structure reduces the risk of dilution for shareholders if Tesla's stock value declines, effectively tying Musk's compensation to sustained company success.
The grant increases Musk's stake in Tesla from 13% to over 20%. The Tesla Board's special committee, consisting of Robyn Denholm and Kathleen Wilson-Thompson, has decided to yield to Musk's demands.
The market looks suspiciously at Musk's promises, and his polarizing nature has been emphasized. He manages to polarize the entire world, with people either loving or hating him. Musk is compared to Prospero of Silicon Valley in the report, a powerful figure who, like Shakespeare's character, wields influence over a magical realm.
However, the share grant has the flavor of a Shakespearean farce, with Musk threatening to abandon Tesla if he was not granted an additional 7% of the company's shares. The grant, in tech sauce, is a significant increase in Musk's ownership of Tesla.
Despite the controversies surrounding Musk, his influence on Tesla and the tech industry remains undeniable. The company's future, especially in areas like AI, autonomy, and new vehicle models such as the Cybertruck, is closely tied to his vision and leadership. Whether this share grant will lead to sustained success for Tesla remains to be seen.
[1] Financial Times, "Elon Musk's Tesla pay plan revised to better align with shareholder interests," 2021. [2] Financial Times, "Elon Musk's share grant: Tesla board caves in to his demands," 2021.
- The recent increase in Elon Musk's stake in Tesla, following the 96 million share grant, could potentially impact the company's average finance performance, as his compensation is now more closely tied to Tesla's growth milestones.
- The tech industry is witnessing a blend of business and technology, as seen in the case of Elon Musk, with his influence in sectors like AI and autonomy, whose success is heavily reliant on his vision and leadership, bolstered by his increased ownership in Tesla.
