Proxy Advisory Firm Wants Tesla Shareholders to Reject Elon Musk's $56 Billion Pay Package

By Thea Felicity

May 26, 2024 01:27 PM EDT

The New York Times Dealbook Summit 2023
NEW YORK, NEW YORK - NOVEMBER 29: Elon Musk speaks onstage during The New York Times Dealbook Summit 2023 at Jazz at Lincoln Center on November 29, 2023 in New York City.
(Photo : Slaven Vlasic/Getty Images for The New York Times)

Tesla shareholders received advice from Proxy Advisory company Glass Lewis to reject the proposed pay package for CEO Elon Musk. The staggering $56 billion pay package could potentially be the largest compensation package for a CEO in corporate America. 

The report from Glass Lewis, shared by CNBC, pointed out concerns over the proposed deal's excessive size, its dilutive impact on ownership, and Musk's involvement in numerous time-consuming projects, including his purchase of Twitter, which he renamed X.

The compensation package, which lacks a salary or cash bonus, hinges on Tesla's market value reaching $650 billion over a decade from 2018. 

READ NEXT: Tesla Shareholder Votes Against Elon Musk's $55 Billion Pay Package, Says 'Tyrant CEO' Abandons EV Maker for His Other Firms

The Aftermath of Elon Musk's Massive Pay Package

However, this proposal has faced criticism, with a Delaware court voiding the original package earlier in the year. According to VCPost, employees feel this would make Musk abandon Tesla and focus on other companies he owns or co-owns.

Musk's unexpected move to shift Tesla's state of incorporation from Delaware to Texas has also raised concerns, with Glass Lewis underlining potential risks and uncertain benefits for shareholders. 

Despite Tesla's advocacy for shareholder approval of the compensation, Glass Lewis has recommended voting against board member Kimbal Musk, Elon's brother, while suggesting the re-election of former 21st Century Fox CEO James Murdoch.

READ MORE: Elon Musk's Tesla Pay Package Struggles to Materialize as It Faces Skepticism from Shareholders

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics