Proxy firm urges rejection of Musk’s $56b pay package

Proxy advisory firm Glass Lewis has advised Tesla shareholders to reject CEO Elon Musk’s $56 billion pay package, which would be the largest for a CEO in the US if approved, as reported by Reuters on Saturday.

Citing concerns over the deal’s “excessive size,” dilutive effects, and Musk’s many other commitments, including his acquisition of Twitter (now X), Glass Lewis criticised the proposal.

The package, put forward by Tesla’s board, ties rewards to a rise in Tesla’s market value to $650 billion over ten years from 2018, with the company currently valued at about $571.6 billion.

In January, a Delaware judge voided the original pay package, prompting Musk to consider moving Tesla’s incorporation to Texas, a move Glass Lewis also opposed.

Tesla’s board chair, Robyn Denholm, defended the package, citing the company’s impressive growth under Musk’s leadership.

Glass Lewis also recommended voting against the reelection of board member Kimbal Musk, while supporting the reelection of former 21st Century Fox CEO James Murdoch.