Why Can't Tesla Just Grant Elon Musk A New Pay Package? Critic And Legal Expert Says CEO 'Can't Replicate The Stock-Pumping Feats' From 2018
Portfolio Pulse from Shanthi Rexaline
A legal expert and former portfolio manager, Lawrence Fossi, has criticized Tesla's (NASDAQ:TSLA) move to reinstate CEO Elon Musk's 2018 compensation plan, which was voided by a Delaware court. Fossi argues that a new compensation plan would result in massive losses for Tesla and be nearly impossible for Musk to achieve. He also suggests that Musk might be hesitant about a new plan due to the difficulty in replicating past stock price gains. Tesla's stock remains significantly below its all-time high, and the company is urging shareholders to vote for the reinstatement of Musk's 2018 award at the upcoming annual meeting.
May 17, 2024 | 9:15 am
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Tesla's move to reinstate Elon Musk's 2018 compensation plan has been criticized by legal expert Lawrence Fossi, who argues that a new plan would result in massive losses and be nearly impossible for Musk to achieve. The upcoming shareholder vote on the plan could impact Tesla's stock price.
The criticism from a legal expert and the potential financial implications of reinstating Musk's 2018 compensation plan could negatively impact investor sentiment. The upcoming shareholder vote adds uncertainty, which may lead to short-term downward pressure on Tesla's stock price.
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