Tesla shareholder group targets Elon Musk, opposes paying $56 billion salary

A group of Tesla shareholders are unhappy with CEO Elon Musk. And he has reportedly urged other shareholders to reject a whopping $56 billion pay package for the unique but eccentric businessman. Accusing Musk of distraction, the group has even said that he is not serving Tesla's best interests.

Musk is leading six companies - EV maker Tesla, social-media company X, rocket maker SpaceX, tunnel-building startup Boring Company, neurotechnology company Neuralink, and AI company xAI. He is one of the richest men in the world. But he is often accused of taking too much responsibility. The concerns are probably greatest about Tesla. Because electric vehicle (EV) sales have declined in recent months.

The group of Tesla shareholders that has targeted Musk is clearly not happy with him at the moment. According to media reports, the group has written a letter saying, "Tesla is suffering from a serious governance failure that requires our immediate attention and action."

"Even as Tesla's performance is faltering, the board has not yet ensured that Tesla has a full-time CEO who is sufficiently focused on the long-term success of our company." The group is also asking other shareholders to oppose the decision to re-elect Tesla directors Kimbal Musk (Elon's brother) and James Murdoch.

According to Forbes, Musk's wealth is estimated at approximately $194.9 billion. And he is currently at number three in the list of the richest people in the world. At present, only Bernard Arnault and Jeff Bezos are ahead of him.

But, Musk's wealth has gradually come under heavy fire as Tesla has been reducing employment. Approximately 10% of Tesla's global workforce will likely be let go, according to Musk's plans. Up until June, there should be more layoffs. This decision was made because EV manufacturers' sales growth is not increasing as was previously anticipated.

However, personal wealth is still strong for the CEO of Tesla. In 2018, his initial compensation package was authorized. It is now up for a second vote by the Tesla board, though.