Elon Musk's $29B award may raise board independence concerns
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Tesla's board has approved Elon Musk's massive new $29 billion stock award. Will that be enough to keep the CEO's focus aimed at the EV giant? Joining me now, Yahoo Finance senior Auto's reporter Pras Subramanian. This is less
Mhm.
than the initial pay package that was approved and then rejected by Delaware court. So what do we know about this one?
Sounds like it's going to address some of the issues about his focus and it requires him to be there for a few years and devote a certain amount of time to the business and that's sort of what people like Dan Ives are asking about uh, in terms of what they want from Elon Musk going forward as they the company approaches critical phase with robo taxis and Optimus robots and all sorts of cyber cabs and all these things happening. So, I think it's addressing those those key issues. Still a lot of money. I mean, I don't know any CEO's making that much kind of that much money in the span of three, four, three to five years. But yes, it is significantly less than that original pay package that's still tied up in in the court system still to this day. Um, and they said that they if one of those two gets approved, it wouldn't like be a double dip situation where it would be one of the either. You couldn't get both. So that's going to address that concern, too. So,
Okay. What about the sort of ongoing questions about the board independence at Tesla? Those, those haven't really gone away, right?
Yeah, I mean the board's confident that almost was going to be okay with this package. Like, well, yeah, he's on the board. He's sort of his friends with everyone there. Uh, Robin Denholm, the chair is something that he someone supposedly hand picked. I mean, so you have to ask that question. Still is it still in play as a whether how independent is this board? There's only one member who's independent. Um, so it's really interesting to me. But
Right.
And there's also, of course, the cognitive distance between this headline, which, yes, we know was sort of a retroactive pay package and the fact that the stock is down 25% this year.
Right. And then the auto the core auto business is, is, is slipping quarter after quarter and there's no indication that's improving. Yes, we have the new Model Y out now, but it was out last quarter and it was still sort of down a bit. So, there needs to be something happening. We're not going to see that cheaper EV not till after the tax credit goes away. So, a lot of question marks here, this is a pretty big pay package, but I guess for some, if you're a Tesla investor, there's kind of some certainty here with what Musk is going to be doing in his, in his time with the company.
Right. Yes, to some degree.
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