Bill Ackman defends Elon Musk’s call for $56 billion pay package in Tesla: ‘Taking away compensation is theft’

In January this year, Elon Musk said he would like a 25 per cent stake to ‘have a strong influence.’ Meanwhile, official shareholder voting results have not been disclosed yet. Tesla's annual shareholder meeting is scheduled to take place later today.

Fareha Naaz
First Published13 Jun 2024, 12:42 PM IST
Bill Ackman American billionaire hedge fund manager on Thursday extended support to Tesla CEO Elon Musk over approval of his multibillion-dollar pay package, a day after voting took place.
Bill Ackman American billionaire hedge fund manager on Thursday extended support to Tesla CEO Elon Musk over approval of his multibillion-dollar pay package, a day after voting took place.

Bill Ackman American billionaire hedge fund manager on Thursday, June 13, extended support to Tesla CEO Elon Musk, who has sought approval for a $56 billion pay package from shareholders.

In a social media post on X (formerly Twitter), Bill Ackman said, “I am not a @Tesla shareholder but I couldn’t agree more. Taking away @elonmusk’s compensation after he created enormous value for shareholders is theft.” He added, “And stealing from a CEO who has created spectacular value for shareholders is not a smart long-term decision for the company.”

In 2021 and 2022, Elon Musk sold around $38 billion of Tesla stock to help finance his purchase of Twitter, now called X. His stake in Tesla, once around 30 per cent, is now 13 per cent without the shares underlying the 2018 package, and 20 per cent with it.

This comment comes a day after Elon Musk acknowledged that the company's shareholders were voting to approve his multibillion-dollar pay package by “wide margins.”

Also read: Elon Musk reveals changes to ‘likes’ privacy policy on X; netizens say ’pointless update’

While drawing reference to resolutions to approve his pay package worth around $56 billion, the Tesla CEO in a post on X stated, "Both Tesla shareholder resolutions are currently passing by wide margins!" A plan to shift Tesla's place of incorporation from Delaware to Texas is also on records. 

Also read: Elon Musk fired 80% of Twitter, and Silicon Valley companies adopted the practice, finds report

In January this year, Elon Musk said that he would like a 25 per cent stake to "have a strong influence.” The official shareholder voting results have not been disclosed yet. Tesla's annual shareholder meeting is scheduled to take place today in the afternoon. 

Former Tesla General Counsel and FIGS Chief Legal Officer Todd Maron in a post on X, he said, “The vote on the pay package for @elonmusk should be a landslide in favor.”

The ex-Tesla General Counsel claimed that among all the things that he liked while working for Tesla, the pay package stood at the top as one of the most essential factors. He suggested that the pay package offered by the company was ‘shareholder friendly’ pay package ever conceived. He noted, there was “no pay of any kind unless shareholders did better than anyone thought possible" and suggested that Elon Musk should be celebrated for having signed up to it.

Also read: Elon Musk gave internet to Amazon’s remote tribe; now they are addicted to social media, porn

The post reads, “The thought that any investor would have pocketed the tremendous upside over the past 6 years and not honor this deal now - after Elon moved mountains to make that upside happen - is unfathomable.”

He praised the SpaceX founder for his achievements and sacrifices in the domain over the years and his expertise in execution of the company which “inspired everyone else at Tesla to achieve what most didn’t even realize they could do, and the world changed for the better as a result.”

Maron appealed to Tesla investors to cast their vote considering Elon Musk’s “brilliant leadership and decision-making” and ensure that "sanity and fairness" prevails. He suggested investors to vote in favour of Elon Mush and “watch Elon lead the company towards even more amazing achievements (and value creation)!”

(With agency inputs)

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First Published:13 Jun 2024, 12:42 PM IST
HomeNewsBill Ackman defends Elon Musk’s call for $56 billion pay package in Tesla: ‘Taking away compensation is theft’

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