In what can only be described as a high-stakes drama, Tesla's largest individual retail shareholder, KoGuan Leo, is continuing his crusade against CEO Elon Musk's eye-watering $56 billion pay package, a hot-button issue set to dominate the upcoming Shareholder Meeting. Leo, who holds over 27 million shares and is Tesla's most substantial retail investor, has voiced his discontent with Musk's leadership and is vehemently opposing the potential ratification of Musk's controversial compensation plan.
2018's Megadeal: A Retrospective
Flashback to 2018, when Tesla’s shareholders signed off on a meteoric pay package for Musk, promising him billions as a reward for hitting specific growth and stock targets. Musk, ever the overachiever, met these goals and was set for a $56 billion payday. However, the euphoria was short-lived. A minor shareholder's lawsuit led to a Delaware judge overturning the pay deal, putting Musk's windfall in jeopardy.
Leo's Stand: A Shareholder’s Revolt
Fast forward to today, and Tesla is pulling out all the stops to get Musk his due, leveraging its influence to rally shareholder votes for the pay package's ratification. Yet, one voice stands obstinately against this tide: KoGuan Leo. Leo recently took to social media platform X to announce his vote against Musk's pay deal, also voting against extensions for James Murdoch and Kimbal Musk, Elon’s younger brother, who serve on Tesla's Board of Directors.
Leo's resistance has earned him the ire of many Musk loyalists, whom he has candidly labeled as 'brainless suckers.' His formidable stake in Tesla affords him considerable clout, a fact that renders Musk's advocates uneasy. Leo, having sunk $3.5 billion into what he estimates is a 0.8 percent stake in Tesla, is determined to see a change at the helm. His contention? Musk’s acquisition of Twitter, now rebranded as X, has siphoned away the CEO's focus from Tesla.
Future at Crossroads: What’s at Stake?
Tesla, however, is not taking this challenge lying down. The company is staunchly supporting Musk’s compensation package, emphasizing that losing this battle could mean losing Musk altogether—a scenario that could lead to a seismic shift in leadership and possibly, a new direction for the company. In the words of Musk, should he be deprived of the power he seeks, he might explore ventures outside Tesla, a move that could redefine not only his career but also Tesla’s future.
In the grand scheme of things, this shareholder showdown is more than just a financial tussle—it’s a power struggle, a clash of visions for the future of one of the world's most innovative companies. As the shareholder meeting looms, all eyes are on Tesla, Musk, and Leo in what promises to be a watershed moment in the company’s storied history.
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