Tesla’s largest individual retail shareholder, KoGuan Leo, is protesting CEO Elon Musk’s $58 billion pay package, which is set to be a major issue at the upcoming Shareholder Meeting. Leo holds over 27 million shares and has been one of Tesla’s largest shareholders for years. In 2018, shareholders approved a substantial pay package for Musk based on hitting specific growth and stock goals, which would have awarded him billions in compensation. However, a small-time shareholder sued Tesla and Musk, resulting in a Delaware judge ruling in favor of the plaintiff, reversing the compensation plan.
Tesla is now working to ratify the pay package for the second time by rallying support from shareholders, but Leo is firmly against it and has openly communicated his opposition. Leo’s significant ownership in Tesla has given him considerable influence, and his stance on Musk’s pay package has caused concern among other shareholders who are supportive of Musk. Leo believes it is time for a change in direction at Tesla, emphasizing the need for a different approach from the company’s leadership. Musk’s recent purchase of Twitter, now called X, has drawn criticism from some investors who argue that it has diverted his focus away from Tesla.
Despite this, Tesla is focused on securing approval for Musk’s package, with Musk indicating that he may explore other opportunities outside the company if he is not granted more authority. The potential loss of his compensation package could lead to a new form of leadership within Tesla and possibly the emergence of a new company.