Former Ford CEO Mark Fields predicts that Elon Musk’s $56 billion pay package will pass during Tesla’s 2024 Annual Shareholders Meeting later this week.
“Listen, I strongly believe this is gonna pass. It’s gonna pass with a pretty good margin. Listen, at the end of the day a lot of the shareholders, particularly the ones that have not bought in the last year—the ones that have been bear for quite some time—they made a lot of money. And a lot of them are thinking ‘hey, he made this fair and square.’ So I think it’s gonna pass,” Fields said during an interview with CNBC.
Bernstein analyst Toni Sacchonaghi predicted the potential drawbacks if Tesla shareholders voted against Musk’s $56 billion pay package. He forecasted that TSLA stock would drop if Musk’s pay package is rejected.
Fields also discussed the possible repercussions if TSLA investors vote not to pass Elon Musk’s 2018 pay package. He forecasted that Elon Musk might focus less on Tesla or even leave the company if shareholders vote against his $56 billion pay package. However, Musk has been vocal about his commitment to Tesla over the years, making it difficult to picture his departure from the company.
Fields predicts that Elon Musk might take some talent, including employees working in the AI and robotics department, away from Tesla if he chooses to leave the company. The former Ford CEO believes Musk’s departure from Tesla would be “good news” for legacy automakers.
“I think one of the biggest impacts is you’re gonna see a high rate of attrition of key talent. Because in Silicon Valley, people don’t necessarily work for companies, they work for people that they respect and drive them. And so if Musk leaves, then I think some of these key people will leave. And I think some of those people that followed people to Tesla will leave as well,” Fields said.
Tesla Board Chair Robyn Denholm said the company could respond in several ways if Musk’s pay package does not pass. However, she warned that it would cost TSLA shareholders more than the $56 billion pay package.
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