Elon Musk criticizes shareholder group profiting from Tesla stock, but opposes $56b payday.

Tesla CEO Elon Musk recently criticized a shareholder group opposing his $56 billion pay package, emphasizing how their investment has significantly grown under his leadership. The California Public Employees’ Retirement System (CalPERS), which owned 183,343 shares of Tesla stock in 2018, saw their investment multiply due to the substantial increase in Tesla’s stock price. At the time of CalPERS’s 2018-2019 Annual Investment Report, Tesla shares were trading at just $14.90.

However, the stock has since increased in value by more than 11 times. Musk responded to CalPERS’s lack of support for his pay by stating, “CalPERS broke the deal. Shame on them, they have no honor.”

Currently, CalPERS owns 6,738,863 shares of Tesla stock, valued at approximately $1.7 billion. Musk’s compensation is a major topic for discussion at the upcoming Tesla Shareholder Meeting. Various firms, shareholders, and investment groups are grappling with differing perspectives on the issue, with retail investors advocating for the CEO to receive his compensation, which was initially approved by shareholders in 2018.

However, earlier this year, a Delaware Chancery Court judge denied and rejected the pay package, prompting Tesla to consider relocating its incorporation to Texas. Alongside the imminent vote, there is a wide range of views on the matter. While some firms are inclined to retain Musk as the CEO of Tesla, many shareholders argue that since the pay package was previously approved, it should be endorsed once more.

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