TUESDAY, 4 AUG 2020

 

CONNECT

Facebook Linked In Twitter
Compliance_29/01-24/09_728x90px
GloriaJeans_266x90px
IMH LTD

New Measures Due To Dangerous Coronavirus Outbreak, President Anastasiades Says

The Policy Of Containment Vis-à-vis Turkey Has Failed, Presidential Commissioner Says

IMH LTD

INTERNATIONAL

brought to you by CIPA

Tesla Shareholders Urged To Vote Elon Musk Out Over His $55bn Executive Bonus

Tesla Shareholders Urged To Vote Elon Musk Out Over His $55bn Executive Bonus

Tesla investors are being urged to vote to remove Elon Musk, the electric vehicle company’s founder and chief executive, from the board of the firm as anger mounts over his bonus deal that could pay him a record $55.8bn (£40bn), The Guardian reported.

 

Pirc, an influential adviser to shareholders, including the UK’s local authority pension funds, on Tuesday recommended that investors voted against Tesla’s executive pay deal because it “unfairly enriches the chief executive”.

 

Pirc said the deal had exposed the company to a lawsuit, alleging that: “The board, including CEO Elon Musk, awarded themselves excessive compensation packages over a three-year period that allegedly allowed directors to ‘enrich themselves at the company’s expense’.”

 

The shareholder adviser called on investors to vote against re-electing Musk to the board because of the pay deal, and warned he posed “a serious risk of reputational harm to the company and its shareholders”.

 

Pirc said Musk’s frequent controversial outbursts on Twitter had cost Tesla millions of dollars in settlements and also represented an “unnecessary reputational risk to the company”.

 

Last year Musk was sued for $190m in defamation damages over derogatory tweets about the British caver Vernon Unsworth, who was helping to rescue 13 people trapped in a Thai cave. A jury found the tweets did not reach the legal standard for defamation, and Musk was not found liable for damages.

 

In 2018 the US Securities and Exchange (SEC) regulator fined both Musk and Tesla $20m over the chief executive’s tweets that he planned to take the company private at a substantial premium to the share price, causing the stock price to surge. As part of the settlement with the SEC Musk was forced to give up his position as Tesla’s chairman.

 

The SEC ruled: “In truth, Musk knew that the potential transaction was uncertain and subject to numerous contingencies. Musk had not discussed specific deal terms, including price, with any potential financing partners, and his statements about the possible transaction lacked an adequate basis in fact.”

 

Pirc said the episode had “prompted accusations of stock market abuse, with the SEC alleging that Musk had lied to investors. Mr Musk and Tesla settled these claims with the SEC, paying $40m, causing financial damage”.

 

Pirc’s shareholder report also raised concerns about Musk’s tweets in opposition to Covid-19 lockdown measures. “Mr Musk has been a vocal opponent of the Covid-19 quarantine, and reportedly required workers to return to work during quarantine, without sufficient precautions/protections and despite protests from workers,” Pirc said. “This concern is furthered as it has also been reported that multiple Tesla employees have tested positive for Covid-19 since returning to work.”

 

Investors were also urged to vote against re-electing Robyn Denholm as Tesla’s chair. She succeeded Musk when he was forced to step down in November 2018. Pirc said she should step down because of her role overseeing Musk’s pay award as independent non-executive chair and as a member of the remuneration committee.

 

Tesla’s annual general meeting was due to take place on 7 July, but the company on Sunday delayed the vote until September.

MORE ON INTERNATIONAL

Tesla Growth Continues Despite Economic Upheaval

Electric car maker Tesla has shrugged off the economic upheaval caused by the pandemic to ...

Uber Drivers To Launch Legal Bid Against App Over Data Use

Minicab drivers will launch a legal bid to uncover secret computer algorithms used by ...

Oxford Coronavirus Vaccine Triggers Immune Response, Trial Shows

Hopes for a vaccine to address the global spread of coronavirus have been raised after ...

FROM AROUND GOLDNEWS

   

Ancoria Insurance Supports The Cyprus Shipping Industry By Granting Three New Scholarships

Ancoria Insurance Public Ltd continues its ongoing support of the Cyprus shipping industry by granting three full scholarships. The three successful recipients ...
   

Completion And Delivery Of Two Additional Photovoltaic Parks

Two additional photovoltaic parks, with a total capacity of 2.5MW were completed and connected to the EAC national network, from L&T Sun Power Ltd. The two ...
   

2nd Cyprus Blockchain Summit: Transforming The Supply Chain With Blockchain

Due to the complexity and lack of transparency of our current supply chains, there is interest in how blockchain technology could totally transform the supply ...
   

Tototheo Maritime And Marine Fields Holdings Sign MoU With CMMI

Tototheo Maritime, a leading maritime technology and digital solutions company, and Marine Fields Holdings, a pioneer in the field of live Port call ...
   

New Measures Due To Dangerous Coronavirus Outbreak, President Anastasiades Says

The government decided on additional measures to stop the spreading of the coronavirus, due to the dangerous outbreak with unpredictable consequences, which ...
   

Back To School With Alphamega Hypermarkets

Going back to school is an ALPHAMEGA affair. Launching their new campaign “Back to School”, Alphamega Hypermarkets are once again supporting ...
   

The Policy Of Containment Vis-à-vis Turkey Has Failed, Presidential Commissioner Says

The policy of containment vis-à-vis Turkey has failed, Presidential Commissioner Photis Photiou has said, citing the President of Cyprus, Nicos ...
   

Deposit Rates In The Cyprus Banking System Declined Marginally In June

Deposit rates in the Cyprus banking system declined marginally in June, according to data published on Friday by the Central Bank of Cyprus (CBC). ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

CFO_AWARDS_15/9
Cyprus Annual Legal Firms

IMH LTD