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Tesla shareholders have been advised to reject Musk’s $56 billion pay package.
Proxy advisory firm Glass Lewis has urged Tesla shareholders to reject a $56 billion pay package for CEO Elon Musk. This would be the largest pay package for a CEO in corporate America if approved.
Glass Lewis cited the "unprecedented size" of the payment agreement, its dilutive impact on usage, and the concentration of ownership as reasons for their recommendation. They also mentioned Musk's involvement in "high-profile projects demanding extraordinary time commitments," such as his acquisition of the social media platform formerly known as Twitter, now called X.
The pay package, proposed by Tesla's board of directors who have faced repeated criticism for their close ties to Musk, includes no salary or cash bonuses. Instead, the rewards are tied to Tesla's market value, which has risen to $650 billion over ten years since 2018. As of now, the company's value is approximately $571.6 billion, according to LSEG data.
In January, Delaware Court Judge Kathaleen McCormick invalidated the payment package. Subsequently, Musk attempted to move Tesla's incorporation state from Delaware to Texas.
