Tesla Chairman Robin Denholm said the company believes there is “great risk with an opportunity for great returns.”
Tesla asked shareholders to re-approve Chief Executive Officer Elon Musk's record $56 billion compensation package after a U.S. judge rejected the deal.
Tesla Chairman Robin Denholm said in a filing with the Securities and Exchange Commission on Wednesday that the board stands by the original salary agreement and believes there is “great risk with an opportunity for great reward.” Ta.
“Elon has not been paid for his work at Tesla, which has contributed to significant growth and shareholder value creation over the past six years,” Denholm wrote.
“We feel this is fundamentally unfair to us, and to many shareholders who have already heard, and inconsistent with the wishes of the shareholders who voted for it.”
Shareholders meeting at the June 13 annual meeting will also be asked to approve a proposal to move the company's headquarters to Texas.
The proposal comes on the heels of a difficult period for electric car manufacturers.
Tesla's car deliveries fell 8.5% in the first quarter, and the company's stock has fallen 37% so far this year, even as the S&P 500 index has risen about 6%.
In a memo to employees earlier this week, Musk said the company is expanding its global workforce to develop talent that is “lean, innovative, and hungry for the next phase of its growth cycle.” The company said it would lay off more than 10% of its employees.
Delaware Court of Chancery Judge Kathleen McCormick rejected Musk's compensation proposal in January, saying the South African-born entrepreneur had significant influence over the deal and would award him such an “incalculable amount”. It was decided that this would be unfair to shareholders.
Tesla stock fell about 1% Wednesday on news of the proposed pay package.