Tesla is pushing back against plans to scrap Elon Musk’s compensation package, which could result in significant costs for the company. The package, worth around $50 billion, was originally negotiated as part of Musk’s 2018 acquisition agreement. However, due to his erratic behavior and conflicts with regulators, many experts believe it should be renegotiated or even terminated.
The Financial Times reported that Tesla is resisting efforts by its board members to restructure the deal, citing concerns about the potential impact on employee morale and shareholder value. The company’s board is believed to be hesitant to scrap the package, which would involve paying out significant amounts of money to Musk in the event he leaves the company.
Tesla has been under increasing pressure from regulators and investors over its handling of Musk’s behavior, including his infamous Twitter posts and his involvement in a fatal Tesla Autopilot crash. The company is seeking ways to mitigate these risks, but it remains unclear whether it will be able to avoid the costs associated with scrapping Musk’s compensation package.
Source: https://www.ft.com/content/ce288133-9dd0-4ae4-8766-c5335700d89c