Tesla investor Scottish Mortgage Investment trust said on Thursday it plans to continue backing CEO Elon Musk’s $56 billion pay package at its annual shareholder meeting next month.
Last month, the EV maker asked shareholders to reaffirm their approval for Musk’s record-breaking compensation after a Delaware judge rejected the package in January.
Scottish Mortgage had agreed to the package Tesla set in 2018 and after agreeing to the deal, the firm believes the amount should be paid out, Tom Slater, manager at the investment trust said.
Musk’s pay package, the largest in corporate America, has no salary or cash bonus and sets rewards based on Tesla’s market value rising to as much as $650 billion over the next 10 years from 2018.
The automotive giant’s market value stood at $574 billion as of Wednesday’s closing price, having already touched the $1 trillion market cap figure in 2021.
Tesla’s chair, Robyn Denholm has reportedly been campaigning and meeting with shareholders to secure their vote for the approval of Musk’s pay deal.
Scottish Mortgage, managed by Baillie Gifford, is yet to decide on Musk’s move to incorporate Tesla in Texas, the investment trust told the Financial Times, which first reported the news first.
—Zaheer Kachwala, Reuters
Login to add comment
Other posts in this group
OpenAI should continue to be
WhatsApp should prepare to leave the Russian market, a lawmaker who regulates the IT sector
This is an edition of Plugged In, a weekly newsletter by Fast Company global technology editor Harry McCracken. You can sign up to receive it each Friday and read all issues
Big changes are coming to the web in the days ahead. On July 25, the U.K.’s Online Safe
For search and rescue, AI is not more accurate than humans, but it is
