Tesla shareholders advised to reject Elon Musk’s ‘excessive’ $56 billion pay package
- by New York Post
- May 26, 2024
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May 26, 2024, 3:42 p.m. ET
Proxy advisory firm Glass Lewis said on Saturday it has urged Tesla shareholders to reject a $56 billion pay package for Chief Executive Officer Elon Musk, which if passed would be the largest pay package for a CEO in corporate America.
The report cited reasons like the “excessive size” of the pay deal, the dilutive effect upon exercise and the concentration of ownership. It also mentioned Musk’s “slate of extraordinarily time-consuming projects” which have expanded with his high-profile purchase of 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 with the billionaire. The package has no salary or cash bonus and sets rewards based on Tesla’s market value rising to as much as $650 billion over the 10 years from 2018. The company is currently valued at about $571.6 billion, according to LSEG data.
In January, Judge Kathaleen McCormick of Delaware’s Court of Chancery voided the original pay package. Musk then sought to move Tesla’s state of incorporation to Texas from Delaware.
The pay package was proposed by Tesla’s board of directors, which has repeatedly come under fire for its close ties with Elon Musk.
REUTERS
Glass Lewis also criticized the proposed move to Texas as offering “uncertain benefits and additional risk” to shareholders.
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