Tesla's Largest Individual Retail Shareholder Opposes Musk's Compensation
TapTechNews May 17th news, the largest individual retail shareholder of Tesla continues to oppose Elon Musk's $56 billion compensation package, which is one of the main topics of the upcoming shareholders' meeting.
KoGuan Leo has been one of the largest shareholders of Tesla for many years and also the largest retail investor of the company, holding more than 27 million shares. Recently, he expressed dissatisfaction with Musk's leadership and opposed the possible compensation package.
In 2018, shareholders voted to approve a huge compensation package that would reward Musk billions of dollars to achieve specific growth and stock targets. Musk achieved these goals and therefore should receive a reward of $56 billion (TapTechNews note: currently about 404.32 billion Chinese yuan).
However, a small shareholder sued Tesla and Musk, and eventually a judge in Delaware made a ruling in favor of the plaintiff, vetoing the compensation plan. Tesla is trying its best to get shareholders to approve the compensation plan again, but it has been opposed by Leo.
Leo posted on social media again today, showing that he voted against Musk's compensation package and some other topics. Leo also voted against extending the tenure of James Murdoch and Elon Musk's older brother Kimbal Musk on the Tesla board of directors and voted against other proposals.
Leo called some of Musk's supporters brainless fools, which triggered many people to counterattack his remarks. Leo's huge Tesla shareholding gives him great influence, which makes other shareholders who generally support Musk feel uneasy.
Leo spent $3.5 billion to buy what he said was 0.8% of Tesla's shares, and he thinks Tesla should change its leader. Musk has been criticized by some investors for his acquisition of Twitter (now known as X), who think it distracts his attention from Tesla.
On the other hand, Tesla is doing everything it can to get Musk his compensation package. Musk previously said that if he didn't get more power, he might seek other opportunities outside the company.