Proxy advisory firm Glass Lewis on Saturday urged Tesla shareholders to reject a $56 billion pay package for CEO Elon Musk that, if accepted, would be the largest for an American company CEO.
The report said the “excessive size” of the payment agreement, its impact on training and concentration of ownership. It also mentions an “extraordinarily time-consuming project” that was expanded by the bulk purchase of Musk’s Twitter, now known as X.
The pay package was proposed by Tesla’s board of directors, which has repeatedly come under fire for its close ties to billionaires. The stock has no salary or cash, and over the 10 years starting in 2018, Tesla’s market value is expected to rise to $650 billion. The company is currently valued at $571.6 billion, according to LSEG.
In January, Delaware District Court Judge Kathleen McCormick issued the original settlement. Musk then wants to move Tesla’s home state from Delaware to Texas.
Glass Lewis also suggested that moving to Texas would present “additional uncertainty and risk” for shareholders.
Tesla shareholders said they approved the compensation.
Tesla chairman Robin Denholm told the Financial Times in an interview this month that Musk deserves a pay package because the company has hit big targets for revenue and share price.
Musk became CEO of Tesla in 2008. In recent years, it has helped improve its bottom line, with a profit of $15 billion in 2018 from a loss of $2.2 billion and the production of cars seven times more, according to Tesla’s online campaign website. .
A chartered advisor advised shareholders to vote against the re-election of his brother billionaire Kimbal Musk, while the former CEO of 21st Century Fox James Murdoch recommended for re-election.
