Tesla is no exception. A London-based proxy advisory firm, Glass Lewis, joined the voices that called for the rejection of the $56 billion pay package to the company’s CEO, Elon Musk, which, if approved, will be the biggest share package to any CEO in corporate America.
Tesla equity firm Glass Lewis also called on its shareholders on Saturday to vote against a $56 billion compensation plan for the company’s boss, Elon Musk, for what would be the biggest ever share-based payout to a CEO in US corporate history.
The report provided some grounds, such as the “over the top” size of the pay deal seeking its reprieve on the basis that, when exercised, it will be dilutive and that there is also the issue of control of the stock. It also mentions Musk’s “slate of extraordinarily time-consuming projects,” whose list has only grown since his acquisition of social media platform Twitter, which is now known as X.
This pay proposal was made by Tesla’s board of directors, who have been criticized severally for being sympathetic to the billionaire. It excludes salary or cash bonus as incentives and targets structure bonuses on the increase in the market value of Tesla to touch up to $650 billion in 10 years from 2018. It is still currently valued at approximately 571 dollars, out of which there are about 6 billion, as per LSEG data.
In January of this year, Delaware’s Court of Chancery, presided over by Judge Kathaleen McCormick, annulled the initial compensation plan. Musk then went ahead to attempt to transfer the incorporation of Tesla from Delaware to Texas.
Glass Lewis also objected to the proposed relocation to Texas, labeling it as “providing little to no concrete advantage and an extra risk to shareholders.”.
Tesla has called shareholders to re-approve the bonuses Strange said on Twitter last night, writing that the Musk compensation plan must be re-approved by shareholders and reposting Elon’s response, which is correct.
Tesla board chair Robyn Denholm noted in an interview with multiple sources this month that Musk worked extremely hard for the $700 million pay package because the car manufacturer met very challenging goals for revenues and its stock price.
