Tesla Is Reportedly Spending Ad Money To Help Get Approval Of Elon Musk’s $55 Billion Pay Package

Tesla is making every effort to win over shareholders to Elon Musk’s contentious $55 billion pay plan. The business recently revealed that it is investing money in ads to sway the next vote, a response to a court decision in January that declared the 2018 vote unlawful on the grounds of transparency.

It all started back in 2018 when Tesla shareholders gave the nod to a stock-based compensation plan for Musk that was nothing short of historic. Yet soon after, a lawsuit came knocking at their door, questioning the process. It accused the board of not spilling all the beans regarding the plan and any possible conflicts of interest among its members. And guess what? The judge sided with them — pointing out how governance issues were rife during the plan’s creation and how shareholders were kept in the dark about it.

In retaliation, Tesla came up with a two-fold plan: first, reincorporating in Texas; second, having another vote by shareholders on that compensation plan— but this time with all cards laid out on the table. Since then, Tesla has been going all out for this revote campaign— creating a website dedicated solely to this cause and bombarding shareholders with communications. And now they’re taking it up a notch by resorting to paid ads.

A recent SEC filing by Tesla revealed the company is purchasing ad space to promote a “yes” vote. This includes Google ads and even promoted posts on a social media platform “associated with Elon Musk,” likely referring to Twitter, where Musk holds significant sway.

Tesla’s ad campaign underscores the complexities surrounding Musk’s compensation and the company’s determination to secure shareholder approval. The outcome of the revote, scheduled for when Tesla shareholders meet in Texas, hinges on whether this advertising blitz can sway their decision.

However, the strategy has its critics. Some argue that spending shareholder money on ads to influence their vote raises ethical concerns. Additionally, questions remain about the long-term impact on corporate governance if companies can simply use advertising campaigns to overcome transparency failures.

The viability of Tesla’s ad-driven strategy remains to be seen. One thing is certain, though: the lines of battle have been established, and the impending vote looks to be a highly anticipated event that will have a big impact on Musk, Tesla, and corporate compensation policies in general.

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