Ron Baron, founder of Barron Capital
Anjali Sundaram | CNBC
Billionaire investor Ron Baron, investing for the long term Tesla The Bulls and shareholders have written an open letter supporting CEO Musk’s controversial $56 billion compensation package.
The chairman and CEO of Baron Capital said Musk’s 2018 compensation contract included “aggressive” performance targets that few believed could be achieved. He said that if these ambitious goals are not achieved, Musk will gain nothing.
“Elon is the ultimate ‘key man’ in key man risks,” Barron said in the letter. “Without his tireless hard work and uncompromising standards, there would be no Tesla. Especially considering how he slept in the Tesla Fremont factory while the company was going through what he called ‘production hell.’ On the floor!
The compensation package proposed by Tesla’s board of directors has been repeatedly criticized because of its close relationship with Musk. The plan has no salary or cash bonuses and sets rewards based on Tesla’s market value rising to $650 billion within 10 years from 2018.
If passed, it would be the largest compensation package for a CEO in corporate America. Tesla’s shareholder meeting is scheduled to be held on June 13.
In January, Delaware Chancery Court Judge Katherine McCormick invalidated the original pay package. Musk then tried to move Tesla’s registration from Delaware to Texas.
Barron previously revealed that his company has invested approximately 20 times in Tesla since first purchasing it in 2014. ), accounting for nearly 30% of the company’s shares.
“At Barron’s, our answer is clear, loud and clear: Tesla and Elon are better together. Tesla is Elon,” he said.
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