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Thursday, July 25, 2024

High allowances for Elon Musk and the CEO of Tesco

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Tesla shareholders have approved a whopping $56 billion pay package for Elon Musk. One of the richest people in the world, currently in place number 3, will increase his fortune valued at $200 billion. At the same time, on the other side of the Atlantic, a storm broke out over the remuneration package for Ken Murphy, the CEO of Tesco, who is to receive an additional £10 million.

“Tesla shareholders have approved a $56 billion compensation package for CEO Elon Musk, the electric vehicle maker said on Thursday, in recognition of his leadership,” Reuters reports.

As the agency notes, “the approval underscores the support Musk enjoys from Tesla's retail investors, many of whom are ardent fans of the billionaire. The proposal was approved despite opposition from some large institutional investors and consulting firms.

Meanwhile, according to payscale.com, the average salary of a Tesla employee is PLN 105,000. dollars per year from 9 thousand bonus dollars (a total of $114,000). The additional remuneration package for Musk is therefore worth approx. 491,228 times as much as the annual earnings of an average worker.

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£10 million is too much

While Musk is celebrating, mainly thanks to small investors, on the other side of the Atlantic Ocean another CEO is in trouble because of his additional remuneration package. Ken Murphy, Tesco's chief executive, faces public criticism over £10m.

“Tesco must justify Ken Murphy's £10m pay package at today's general meeting, and responsible investment NGO ShareAction plans to ask why Murphy's pay should double when supermarket contract workers are underpaid.” reports The Guardian.

Tesco store employees receive the so-called Real Living Wage – the UK wage rate based on the cost of living, above minimum wage. It is paid voluntarily by over 14,000 British companies – including Tesco. However, ShareAction says contract workers – such as cleaners and security – do not.

Elon Musk and Ken MurphyPAP/Abaca/tescoplc.com

“Slap in the Face”

“In a world where Tesco earns £2.3 billion a year, paying those who keep stores safe and clean a real living wage should not be required – it should be automatic,” Dan Howard of ShareAction told the Guardian. “Unfortunately, Tesco has been slow to take appropriate steps to ensure its external contract workers are paid a living wage. Failure to take into account the financial difficulties faced by many people working for Tesco during the cost of living crisis will damage Tesco's reputation with both shareholders and customers, Howard said.

As The Guardian notes, taking into account the additional package, Murphy currently earns over 430 times more than the average salary at Tesco. For comparison, in 2023 it was 197 times more.

In May, the Unite trade union criticized the payout of the package, calling it a “slap in the face” to millions of struggling households who were paying for it with higher food bills.

Main photo source: PAP/Abaca/tescoplc.com

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