Proxy Firm Urges Tesla Shareholders to Reject Musk's $56 Billion Pay Deal and Texas Relocation
May 27, 2024Glass Lewis, a proxy advisory firm, recommends Tesla shareholders vote against Elon Musk's $56 billion pay deal.
The compensation package is the largest for a CEO in corporate America and lacks a salary or cash bonus, contingent on Tesla reaching a $650 billion market value.
Glass Lewis also advises against relocating Tesla's domicile to Texas, citing uncertain benefits.
Concerns include the excessive size and dilutive impact of Musk's compensation and his involvement in time-consuming projects like the social media platform X.
Tesla's board endorses the pay package, but some shareholders, including the largest individual shareholder, oppose it.
Musk has threatened to move AI and robotics development outside of Tesla if he doesn't have sufficient voting control.
The upcoming vote at Tesla's annual meeting on June 13 will determine the fate of Musk's leadership and the company's direction.
Tesla promotes shareholder approval through advertisements and a dedicated website, seeking to secure support for the package previously rejected by a Delaware judge.
Summary based on 5 sources
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Sources
CNBC • May 26, 2024
Tesla shareholders advised to reject Musk's $56 billion payYahoo Finance • May 26, 2024
Tesla shareholders advised to reject Musk's $56 billion paySeeking Alpha • May 25, 2024
Glass Lewis recommends Tesla shareholders reject Musk's $56B compensation package