Glass Lewis, a proxy advice company, encouraged tesla shareholders on saturday to oppose Chief Executive Officer Elon Musk's $56 billion compensation plan, which, if approved, would be the highest pay package for a CEO in corporate America.
 
The research noted issues such as the "excessive size" of the compensation package, the dilutive effect on exercise, and the concentration of ownership. It also referenced Musk's "slate of extraordinarily time-consuming projects," which grew following his high-profile acquisition of X.

The remuneration deal was suggested by Tesla's board of directors, which has faced criticism for its tight links to the billionaire. The deal includes no salary or cash incentive, and awards are predicated on Tesla's market value growing to up to $650 billion over the next ten years beginning in 2018. According to LSEG statistics, the corporation is presently valued at around $571.6 billion.

In January, Judge Kathaleen McCormick of Delaware's court of Chancery overturned the initial salary deal. Musk then tried to change Tesla's state of incorporation from Delaware to Texas.
 
Glass Lewis also opposed the projected relocation to texas as providing "uncertain benefits and additional risk" to shareholders. Tesla has asked shareholders to repeat their support of the remuneration.
 
In an interview with the Financial Times this month, Tesla's board chair Robyn Denholm said Musk deserves the compensation deal since the business met lofty revenue and stock price forecasts.
 
Musk became Tesla's CEO in 2008. According to an online campaign website, Vote tesla, he has helped improve performance in recent years, moving the business to a $15 billion profit from a $2.2 billion deficit in 2018, and producing seven times as many vehicles.
 
 
 
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G GOWTHAM

26/05/2024 09:42 AM