Proxy advisory firm Glass Lewis has urged Tesla shareholders to reject a $56 billion pay package for CEO Elon Musk, which would be the largest pay package for a CEO in corporate America. The firm cited reasons such as the “excessive size” of the deal, dilution of ownership, and Musk’s involvement in multiple time-consuming projects, including the recent purchase of Twitter.
The proposed pay package, which has no salary or cash bonus, is based on Tesla’s market value rising to $650 billion over 10 years. However, Glass Lewis criticized the package and also raised concerns about Musk’s plan to move Tesla’s state of incorporation to Texas.
Despite the criticism, Tesla has urged shareholders to reaffirm their approval of the compensation. Board chair Robyn Denholm defended Musk’s pay package, citing the company’s success in hitting revenue targets and increasing its stock price.
In addition to the pay package, Glass Lewis recommended shareholders vote against the reelection of board member Kimbal Musk, Elon’s brother, while former 21st Century Fox CEO James Murdoch’s reelection was recommended.
Overall, the proposed pay package for Elon Musk has sparked controversy and divided opinions among Tesla shareholders. The final decision will be made by the shareholders in the upcoming vote.
