Battle over Elon Musk’s $56 billion pay package: Glass Lewis urges Tesla shareholders to reject deal

The battle over Elon Musk’s $56 billion pay package at Tesla has escalated as proxy advisory firm Glass Lewis has urged shareholders to reject the proposal. If approved, Musk would have the largest pay package for a CEO in corporate America. Glass Lewis cited concerns about the “excessive size” of the deal, its dilutive effect on ownership, and the potential impediment of Musk’s other projects, including X, formerly known as Twitter.

On the other hand, Tesla’s board chair, Robyn Denholm, has defended Musk’s compensation, stating that he deserves it due to the company’s successful achievement of ambitious targets. Musk’s pay package, proposed by Tesla’s board, is tied to the company’s market value reaching $650 billion over a 10-year period, with no salary or cash bonus included.

The package was initially voided by a judge in January, prompting Musk to seek to move Tesla’s state of incorporation from Delaware to Texas. Despite the controversy surrounding his pay, Musk has been credited with leading Tesla to a $15 billion profit from a $2.2 billion loss in 2018.

As the debate over Musk’s compensation continues, shareholders will ultimately have the final say on whether to approve the controversial pay package. Stay tuned for updates on this developing story.