Close Navigation
Learn more about IBKR accounts

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’

Join The Conversation

For specific platform feedback and suggestions, please submit it directly to our team using these instructions.

If you have an account-specific question or concern, please reach out to Client Services.

We encourage you to look through our FAQs before posting. Your question may already be covered!

Leave a Reply

Disclosure: Benzinga

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers Third Party

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.