Investment firm Gerber Kawasaki's co-founder Ross Gerber on Saturday slammed Tesla Inc.'s (NASDAQ:TSLA) Board of Directors for supporting Elon Musk's $1 trillion pay package.
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Musk Over Investors
Gerber publicly criticized Tesla's board for prioritizing CEO Elon Musk‘s interests over those of other shareholders.
"Ive never seen a worse BOD than tesla. It’s so transparent that they all represent Elons interests and zero representation of the other 85% of the company," Gerber said in a post on X.
Gerber described the situation as “absurd,” highlighting that Musk is essentially being granted $1 trillion of Tesla’s shareholder value based on arbitrary goals.
Threat To Leave
Gerber’s comments also pointed out that these goals are tied to a threat Musk made to leave the company.
The criticism from Gerber comes at a time when Tesla’s board is under scrutiny for its proposed compensation package for Musk.
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According to Gary Black, managing partner at The Future Fund, Tesla shareholders are expected to approve Musk’s nearly $1 trillion pay package at the upcoming November 6 meeting. This package is one of the largest in corporate America.
Additionally, Tesla Chair Robyn Denholm has warned shareholders that Musk might step down if the board rejects his proposed pay package. Denholm emphasized Musk’s leadership as crucial for Tesla’s future, particularly as the company aims to lead in artificial intelligence and autonomous technology.
Florida Pension Fund Backs Plan
The State Board of Administration of the Florida Retirement System, which holds over $1 billion in Tesla stock, has backed Musk’s compensation plan. They view it as a “bold, performance-driven incentive structure” with potential benefits for investors if Tesla meets its metrics.
“If Tesla meets all metrics within this plan, investors will benefit from incremental value creation of $7.5 trillion,” the agency said in the filing, adding that the created value for shareholders outweighs any dilution as well as the “incremental equity award to Elon Musk for each tranche of compensation.”
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