Gary Zhou 
- 💰 One of Tesla’s largest individual shareholders, Leo KoGuan, has criticized CEO Elon Musk and his stake in the company amid the ongoing vote on Musk’s rejected 2018 pay package.
- 🗳️ Tesla is holding an investor vote to approve or deny Musk’s 2018 compensation package worth $55.8 billion, which was voided by a Delaware judge.
- 💼 Musk has requested a new compensation package with more stock and voting control, threatening to develop AI elsewhere if he doesn’t get it.
- 🤑 KoGuan called Musk a “magician,” his supporters “brainless suckers,” and referred to the proposed package as a “robbery attempt.”
- 📉 KoGuan pointed out that Musk has sold around $39 billion in Tesla shares since the stock peaked in 2021, despite having a 13.4% stake and wanting an additional 10%.
- 🚫 KoGuan has urged shareholders to vote “NO” on the compensation package, accusing Tesla’s mission of being a “ruse to suck in naive investors and engineers.”
- 👎 This isn’t the first time KoGuan has been critical of Musk, previously suggesting that Musk should consider “fading away and appointing his replacement” if he isn’t willing to spend more time on Tesla.
- 🗳️ Tesla’s Annual Shareholder Meeting is scheduled for June 13, and shareholders can vote on ratifying Musk’s pay plan until then.
In the ever-evolving saga surrounding Elon Musk’s compensation at Tesla, tensions are running high as one of the company’s largest individual shareholders has launched a scathing critique against the CEO’s demands for more voting control and a new compensation package.
The Rejected Pay Package
The controversy stems from a Delaware judge’s recent ruling to void Musk’s 2018 compensation package, which was worth a staggering $55.8 billion. In response, Tesla is now holding an investor vote to determine the fate of the rejected pay plan as part of its upcoming Annual Shareholder’s Meeting.
However, the situation has taken an unexpected turn with Musk’s request for a new compensation package that would grant him more stock and, consequently, more voting control over the company’s affairs. Musk has even gone as far as threatening to develop artificial intelligence elsewhere if his demands are not met.
Leo KoGuan’s Shareholder Revolt
Enter Leo KoGuan, one of Tesla’s largest individual stakeholders, who has emerged as a vocal critic of Musk’s actions. In a series of scathing posts on the social media platform X (formerly Twitter), KoGuan has launched a full-fledged campaign against the CEO’s compensation demands.
The “Magician” and His “Brainless Suckers”
KoGuan’s criticism has been both sharp and unrelenting. He referred to Musk as a “magician” and dubbed his supporters “brainless suckers,” accusing them of enabling what he termed a “robbery attempt” through the proposed compensation package.
The crux of KoGuan’s argument lies in Musk’s share sales over the past few years. Despite already holding a 13.4% stake in Tesla, Musk has sold approximately $39 billion worth of shares since the stock peaked in 2021. Yet, he now seeks an additional 10% voting control through the new compensation package.
In a pointed jab, KoGuan revealed that he paid a staggering $3.5 billion for just 0.8% of Tesla’s shares, highlighting the disparity between his investment and Musk’s financial maneuverings.
A Call to Vote “NO”
KoGuan’s campaign has been unequivocal in its message to Tesla’s shareholders: “Don’t be a sucker, just vote NO.” He has even gone so far as to accuse Tesla’s mission of accelerating the world’s transition to sustainable energy as a “ruse to suck in naive investors and engineers.”
This isn’t the first time KoGuan has voiced criticism against Musk. Last month, he suggested that the CEO should consider “fading away and appointing his replacement” if he isn’t willing to dedicate more time to Tesla’s operations.
The Annual Shareholder’s Meeting
As the June 13 Annual Shareholder’s Meeting approaches, the battle lines have been drawn. Tesla shareholders will have the opportunity to cast their votes on ratifying Musk’s 2018 pay plan, as well as the company’s intent to move its incorporation from Delaware to Texas.
Tesla’s Board Chair, Robyn Denholm, has expressed support for the ratification of Musk’s pay package, citing fundamental fairness and respect for the CEO. However, KoGuan’s vocal opposition has added fuel to the fire, setting the stage for a potentially heated shareholder showdown.
Conclusion
The controversy surrounding Elon Musk’s compensation and demands for more voting control has exposed deep divisions within Tesla’s shareholder community. As the Annual Shareholder’s Meeting looms, the outcome of this battle will not only shape the company’s future but also serve as a litmus test for investor sentiment toward Musk’s leadership and vision for Tesla.
Amidst the clash of opinions and accusations, one thing is clear: the shareholder revolt led by Leo KoGuan has elevated this issue to a level of unprecedented scrutiny, forcing Tesla and its shareholders to confront difficult questions about executive compensation, corporate governance, and the delicate balance between vision and accountability.
