Tesla is just one of the leading companies in electric car production. Elon Musk’s salary is currently the subject of discussion at Tesla, which has launched an electric pick-up model called Cybertruck along with Tesla Model S, Model 3, Model X and Model Y.
CALL TO REJECT ELON MUSK’S SALARY
According to Bloomberg’s news; Tesla shareholders have been called by consulting firm Glass Lewis & Co to reject the $56 billion salary package proposed for CEO Elon Musk.
Glass Lewis & Co. cited the “excessive size of the fee package” and the dilution effect it would create during use.
“IT EXPANDED FURTHER WITH THE ACQUISITION OF X”
“Musk’s extremely time-consuming projects unrelated to the company were documented before the 2018 settlement, and this was further expanded with the acquisition of the company now known as X,” Glass Lewis said in its report.
This recommendation could potentially influence how major institutional investors vote on Musk’s pay at the automaker’s annual meeting on June 13.
Next month’s vote will be the second time Musk’s pay package is put before shareholders. The fee package was first drafted in 2018, but a judge invalidated it earlier this year, saying investors were not fully informed about important details.
If Tesla’s board can show that the pay package still enjoys broad support, that could help in a legal challenge of the decision. On the other hand, a possible loss of support will spark new discussions about investors losing faith in Musk’s leadership. However, the vote is advisory only and Tesla may choose to ignore it.
MUSK’S SALARY PACKAGE, GLASS LEWIS, SHAREHOLDERS AND MUSK’S BROTHER…
Nearly three-quarters of investors supported Musk’s pay package six years ago. At that time, Glass Lewis recommended rejecting the package, arguing that it was too expensive.
Along with this move, Glass Lewis suggested that they vote against the re-election of board member Kimbal Musk, Elon Musk’s brother.
Tesla is running a campaign to win shareholder support to counter public criticism about Musk’s salary. While executive chairman Robyn Denholm reaches out to major institutional investors, the “Vote Tesla” website appeals to the company’s individual shareholders.
