Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
Leo KoGuan, one of the largest individual shareholders of Tesla Inc. (NASDAQ:TSLA), has publicly voiced his disapproval of CEO Elon Musk‘s compensation package, in the wake of an investor vote currently being held by Tesla.
What Happened: KoGuan expressed his criticism on social media late on Sunday, following a Delaware judge’s decision in January to invalidate Musk’s 2018 compensation package, which was then worth $55.8 billion.
Tesla is now holding an investor vote to decide on Musk’s pay plan approval during its forthcoming Annual Shareholder Meeting.
Musk, who has sold nearly $39 billion worth of Tesla shares since the stock’s peak in 2021, still owns a 13.4% stake in the company. He is also seeking an additional 10%.
KoGuan, who has invested approximately $3.5 billion for a 0.8% stake in Tesla, termed Musk’s request for more voting control as a “robbery attempt.”
“Paid $3.5 billion for measly 0.8% of Tesla in the market. What is your skin in Tesla? Whereas the Magician is minus -$39 billion and already got 13.4% of Tesla,” he posted on X. “Robbery of ten thousand years! But he wanted 10% more. Brainless SUCKERS cluelessly are assisting this robbery attempt.”
Paid $3.5 billion for measly 0.8% of Tesla in the market. What is your skin in Tesla? Whereas the Magician is minus -$39 billion and already got 13.4% of Tesla. Robbery of ten thousand years! But he wanted 10% more. Brainless SUCKERS cluelessly are assisting this robbery attempt. https://t.co/SxGfrbjtCY— KoGuan Leo (@KoguanLeo) May 5, 2024
KoGuan also took a jab at Musk for selling shares over the past few years and sarcastically labeled him a “magician.”
He referred to Musk’s supporters as “brainless suckers” and accused Tesla’s mission to accelerate the world’s transition to sustainable energy as a “ruse to suck in naive investors and engineers.” He urged shareholders to vote against the proposed package.
Don't be a sucker, just vote NO https://t.co/kBBV0ESfVO— KoGuan Leo (@KoguanLeo) May 5, 2024
Tesla’s Annual Shareholder Meeting is slated for June 13, and shareholders have until then to vote on the ratification of Musk’s 2018 pay plan.
Why It Matters: Musk in March thanked some shareholders for writing to the Delaware Chancery Court, which voided his pay plan, calling it “unfathomable.”
Robyn Denholm, Tesla’s board chair, last week pleaded with shareholders to reapprove Musk’s billion pay package, arguing that a single judge’s ruling should not override the collective will of Tesla’s millions of owners.
Many observers, however, have questioned the rationale behind the proposed compensation for Musk, with one going so far as to call it “lunacy and completely detached from reality.”
Last week, the S&P lowered Tesla’s management and governance score due to Musk’s dominant role in the company. The rating agency suggested that Tesla increase board independence and nominate new independent directors to reduce key-person risk.
Read Next: Warren Buffett Comments On Whether Elon Musk’s FSD Will Impact Berkshire’s Auto Insurance Business. Will Oracle Of Omaha Bet On Tesla?
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