Some Tesla Inc. board members felt pressured to take medication with Chief Executive Elon Musk for danger of upsetting him if they didn’t partake, the Wall Street Journal reported Sunday.
In a report following up on a January article that detailed Musk’s alleged use of unlawful medication and executives’ and board members’ considerations for the well being of Musk and his firms, the Journal on Sunday detailed the deep private and monetary ties that bind Tesla administrators to the corporate and to Musk, together with events, holidays and enormous investments in every others’ firms.
According to the Journal, most of Tesla’s administrators have earned inventory choices value a whole bunch of tens of millions of {dollars} throughout their phrases, considerably greater than board members at different firms. The report cited consultants in company governance who stated such shut ties might intervene with administrators’ independence.
The report additionally stated some present and former board members at Tesla
TSLA,
and SpaceX have direct data of Musk’s drug use, however haven’t moved to deal with it.
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According to the Journal, the quantity of Musk’s and a few board members’ drug use — which reportedly has included cocaine, ecstasy, LSD, magic mushrooms and prescription ketamine — has change into regarding.
Some of Musk’s pals and firm administrators really feel an expectation to make use of medication at events he attends, the Journal stated, feeling strain to not refuse since he’s made them a lot cash and out of a need to stay in his good graces.
The Journal additionally reported that in 2022, Oracle Corp. co-founder Larry Ellison — a good friend of Musk’s and a former Tesla board member — supplied use of his Hawaiian island for Musk to loosen up and detox from his drug use. Around the identical time, different pals reportedly urged Musk to go to rehab.
Still, board members have taken no public actions to rein in Musk’s obvious drug use.
The lack of board pushback to Musk was dropped at the forefront final week when a Delaware chancery decide voided Musk’s $56 billion compensation package deal, ruling that the board didn’t act independently, and that Musk “enjoyed thick ties with the directors tasked with negotiating on behalf of Tesla.”
Potential drug use by Musk and board members raises a variety of pink flags that would have an effect on the businesses, together with erratic conduct, attainable violations of the regulation and publicity to blackmail. It might additionally violate billions of {dollars}’ value of U.S. authorities contracts with SpaceX and have an effect on safety clearances.
NASA stated final month it has no proof of drug use at SpaceX, based on Bloomberg News, and Musk’s lawyer instructed the Journal in January that the CEO has by no means failed a drug check.
Tesla, which disbanded its media relations division in 2020, didn’t reply for a request for remark Sunday. SpaceX additionally didn’t reply to a request for remark.
Source web site: www.marketwatch.com