Glass Lewis, a proxy advisory firm, has urged Tesla (Nasdaq: TSLA) shareholders to reject a proposed $56 billion pay package for CEO Elon Musk. If approved, this would be the largest CEO pay package in corporate America.
The firm cited several reasons for its recommendation, including the “excessive size” of the deal, its dilutive effect, and Musk’s concentration of ownership. Additionally, Glass Lewis mentioned Musk’s “slate of extraordinarily time-consuming projects,” including his obsession with X.
The pay package was proposed by Tesla’s board of directors after a Delaware court voided the original pay package in January. The board has long been criticized for the members’ close relationship with Musk.
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Glass Lewis also recommended voting against the reelection of Musk’s brother Kimbal to the board and recommended voting for the reelection of former 21st Century Fox (Nasdaq: FOXA) CEO James Murdoch
These recommendations come just a few days after a group of shareholders that includes Amalgamated Bank (Nasdaq: AMAL) and SOC Investment Group urged other investors to reject the package and vote against the reelection of both Kimbal and Murdoch.
Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
