Tesla's Board Refutes CEO Speculations, Musk Condemns Misleading Publication
Tesla Denies Search for New CEO, Affirms Confidence in Elon Musk
In a recent development, Tesla has publicly denied reports suggesting that its board of directors is searching for a new CEO to replace Elon Musk. The denial was issued via Tesla's official X account on Thursday, following a report by the Wall Street Journal (WSJ) that claimed the board had started looking for a successor.
The denial statement, which was also reposted by Musk himself on the official X account, affirmed that the board is not currently seeking a new CEO. Tesla Chair Robyn Denholm, in the post, stated that Musk is the CEO of Tesla and the board is highly confident in his ability to continue executing on the exciting growth plan ahead.
This commitment to Musk is further evidenced by the recent approval of a massive $29 billion equity pay package for Musk, contingent on his remaining continuously in a senior leadership role at Tesla for at least two more years. This compensation plan is intended to incentivize Musk to stay and focus on Tesla’s future growth and ambitious projects.
However, the pay package and governance around Musk’s compensation are under shareholder and regulatory examination. A shareholder group has urged Nasdaq to investigate the board’s handling of Musk's executive compensation, with concerns revolving around whether proper shareholder approval was obtained given the size and nature of the pay deal.
Despite this scrutiny, there have been no announced CEO succession plans as a result. The WSJ article, which suggested that Tesla's board was exploring a new CEO to replace Musk, did not communicate the denial to the media outlet before publication.
Musk expressed his disapproval of the WSJ for failing to include an unequivocal denial from the Tesla board before publishing the article. The WSJ article did not mention any communication from Tesla to the media outlet regarding the denial after the story was published.
It is worth noting that the WSJ article did not include a statement from Tesla Chair Robyn Denholm or any other board member. This omission in the original report has fuelled Musk's accusation that the WSJ deliberately published a false article.
As of writing, the links to both the WSJ and Reuters articles are no longer available on the web.
[1] - https://www.tesla.com/news/tesla-denies-search-for-new-ceo [2] - https://www.reuters.com/business/autos-and-transportation/tesla-approves-29-billion-equity-pay-package-elon-musk-2021-09-28/ [3] - https://www.nasdaq.com/articles/tesla-shareholder-group-urges-nasdaq-to-investigate-elon-musks-executive-compensation-2021-10-05 [4] - https://www.cnbc.com/2021/10/05/tesla-approves-29billion-equity-award-for-elon-musk.html [5] - https://www.reuters.com/legal/government/nasdaq-faces-shareholder-pressure-over-tesla-elon-musks-executive-compensation-2021-10-06/
[1] Tesla's denial of a CEO succession plan, as stated through its official X account, also emphasized their commitment to technology and innovation within the business and finance sectors.
[2] Despite shareholder concerns and a regulatory examination of Musk's compensation, Tesla's confidence in his leadership role, particularly in spearheading future technological advancements, remains unwavering.
