Elon Musk is trying a new approach to get his $56 billion pay package from Tesla approved: A charm offensive.
The CEO of the electric vehicle manufacturer is offering a guided tour of the company’s production lines for the Cybertruck and Model Y in Texas on June 12, the day before the company’s annual shareholders meeting.
Only 15 shareholders will be allowed on the tour and to be considered, they will have had to have cast a vote on Musk’s pay package, which was struck down by a Delaware judge over governance flaws. The company says how they voted on the matter does not affect their chances of taking the tour. Winners of the contest will also have a reserved seat at the stockholder meeting in June.
Musk will be joined by Franz von Holzhausen, who leads design for the company, and other executives in giving the tour.
The move is part of a major push by the company to increase shareholder support for Musk’s pay package. The company says passing it is essential to ensure Musk’s focus stays on Tesla and noting he has not been paid for any of his work at the company over the past six years. Additionally, it argued, Musk has agreed to a five-year lock-up period for his stock, which the company hopes will be more than sufficient time for shares to gain ground.
Critics, though, say Musk’s attention is split between the automaker, SpaceX and Twitter/X. Vehicle sales are down and the stock has slumped this year, even with layoffs. New York City Comptroller Brad Lander has lampooned the deal, saying “There’s rarely been as egregious a flaunting of independent shareholder governance as this.”
Musk owns 13% of Tesla. The additional stock in this proposed pay package would raise his potential ownership to 23% of the company. He had threatened previously to build AI products outside of Tesla if he does not get 25% of the company’s voting power, which could impact its self-driving technology.
