Tesla CEO Elon Musk’s $56 billion payday, to be voted on by shareholders at an upcoming meeting, remains a major concern for investors. Proxy firms are providing advice on how to vote, with one firm, Glass Lewis, advising shareholders to reject the pay package citing odd arguments such as its “excessive size” and Musk’s “slate of extraordinarily time-consuming projects.”
Glass Lewis also expressed concerns about the potential move of the company to Texas, suggesting that it may present uncertain benefits and additional risks for Tesla investors. The implications of the upcoming vote are significant, as Tesla could lose Musk as CEO and possibly its standing as a company without him.
Some shareholders view the decision as straightforward, while others believe it may be time for a change in the electric automaker’s direction, despite its established leadership in the sector. The arguments against Musk’s pay package by Glass Lewis are considered peculiar.
While the size of the package is undeniably large, the concept of “excessive” is subjective, with some shareholders believing that Musk is deserving of the compensation. Moreover, the concerns about his workload do not seem to account for his successful management of intense projects, such as SpaceX and Neuralink, alongside Tesla.
Additionally, Glass Lewis voted against Kimbal Musk’s re-election to the Board but recommended James Murdoch to remain a member.