What you need to know:
- In a recent interview, Tesla’s board chair Robyn Denholm argued that Musk deserves the pay package due to the company’s achievement of ambitious revenue and stock price targets.
- Musk assumed the role of Tesla CEO in 2008 and has notably contributed to its turnaround, with the company achieving a $15 billion profit from a $2.
Glass Lewis, an advisory firm, stated on Saturday that it’s advising Tesla shareholders to oppose a $56 billion compensation package proposed for CEO Elon Musk. If approved, this would mark the largest pay package for a CEO in corporate America. The firm’s report cited concerns such as the excessive size of the proposed pay deal, its dilutive impact upon exercise, and the concentration of ownership. It also noted Musk’s involvement in a slate of highly time-consuming projects, further expanded by his recent high-profile acquisition of Twitter, now rebranded as X.
Tesla’s board of directors, criticized for its close association with the billionaire, proposed the pay package. It offers no salary or cash bonus but instead rewards are tied to Tesla’s market value potentially reaching $650 billion over a decade starting from 2018. Currently, the company is valued at around $571.6 billion according to LSEG data. In January, Judge Kathaleen McCormick of Delaware’s Court of Chancery invalidated the initial pay package. Subsequently, Musk aimed to relocate Tesla’s state of incorporation from Delaware to Texas.
Glass Lewis also criticized the proposed relocation to Texas, citing “uncertain benefits and additional risk” for shareholders. Despite this, Tesla is urging shareholders to reaffirm their approval of the compensation package. In a recent interview, Tesla’s board chair Robyn Denholm argued that Musk deserves the pay package due to the company’s achievement of ambitious revenue and stock price targets. Musk assumed the role of Tesla CEO in 2008 and has notably contributed to its turnaround, with the company achieving a $15 billion profit from a $2.2 billion loss in 2018. Additionally, according to an online campaign website, Vote Tesla, vehicle production has increased sevenfold under Musk’s leadership in recent years.
The proxy advisor also advised shareholders to vote against the reelection of board member Kimbal Musk, the billionaire’s brother. However, they recommended the reelection of former 21st Century Fox CEO James Murdoch.
Do you have a story or an opinion to share? Email us on: info@falconposts.com Or follow the Falconposts on X Platform or WhatsApp for the latest updates.
