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Ron Baron Backs Elon Musk’s $56B Pay Package: ‘Tesla Is Better With Elon’

Posted June 5, 2024 at 10:00 am
Akanksha Bakshi
Benzinga

ZINGER KEY POINTS

  • Billionaire Ron Baron defends Elon Musk’s $56 billion compensation amidst criticism.
  • Proxy firm advises against Musk’s pay, but investors expect package reinstatement.

In a recent demonstration of unwavering support for Tesla’s CEO Elon Musk, billionaire investor Ron Baron has articulated strong backing for Musk’s substantial $56 billion compensation package amidst ongoing scrutiny.

What Happened: 

The open letter penned by the chairman and CEO of Baron Capital underscores the ambitious nature of Musk’s 2018 contract, which included stringent performance targets that were initially met with skepticism.

Baron emphasized that without Musk’s unparalleled commitment and exacting standards, Tesla would not exist as it does today. He recounted instances of Musk’s dedication during Tesla’s critical phases, including times when Musk slept at Tesla’s production facilities to oversee operations, reported CNBC.

“At Baron Capital, our answer is clear, loud, and unequivocal: Tesla is better with Elon. Tesla is Elon,” Baron wrote.

Proxy advisory firm ISS has advised shareholders to vote against Elon Musk’s $56 billion pay package, calling it “excessive,” despite Tesla’s success. ISS supports moving Tesla’s incorporation from Delaware to Texas and recommends voting against director James Murdoch.

A Morgan Stanley survey found that 57% of investors expect Elon Musk’s 2018 pay package to be reinstated, with support outweighing opposition by a two-to-one ratio.

Reflecting on the financial journey, Baron disclosed that since initially investing in Tesla in 2014, his firm’s stakes have grown twentyfold, making Tesla the paramount asset in the Baron Partners Fund (BPTIX).

Price Action:

TSLA shares trading higher by 0.76% at $176.09 premarket at last check Wednesday.

Originally Posted June 5, 2024 – Ron Baron Backs Elon Musk’s $56B Pay Package: ‘Tesla Is Better With Elon’

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