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.
The chairman and CEO of Baron Capital penned an open letter underscoring the ambitious nature of Musk’s 2018 contract, which included stringent performance targets 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, as reported by CNBC.
“At Baron Capital, our answer is clear, loud, and unequivocal: Tesla is better with Elon. Tesla is Elon,” Baron wrote.
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Opposition and Support
Despite Tesla’s success, proxy advisory firm ISS has advised shareholders to vote against Musk’s $56 billion pay package, calling it “excessive.” ISS also supports moving Tesla’s incorporation from Delaware to Texas and recommends voting against director James Murdoch. However, 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.
Financial Journey
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).
Who is Ronald Baron?
Ronald Baron grew up in a Jewish family in New Jersey. He is the founder of Baron Capital, an investment management firm based in New York City. The firm manages the Baron Funds, which he also founded, and has approximately $45 billion in assets under management. As of November 2022, Baron had a net worth of $5 billion.
