A few days ago, Glass Lewis & Co.
, a large agency advisory firm, urged Tesla shareholders to reject a $56 billion salary package for Tesla CEO Elon Musk.
In response, Tesla fought back.
Photo source: Tesla, Bloomberg reported that on May 29, Tesla said in a shareholder letter titled “Glass Lewis ‘Misunderstandings of Tesla” that Glass Lewis “ignored key considerations, used wrong logic, and relied on guesses and assumptions.
” Tesla urged shareholders to ignore Glass Lewis ‘advice and vote in favor of Musk’s compensation plan and agree to a proposal to move the company’s registration from Delaware to Texas.
The content of the letter shows,”Tesla is one of the most successful companies of our time, and we have completely transformed the automotive market.
“, Tesla’s board of directors hopes to win shareholder support before its annual meeting on June 13.
Among all the proposals, the most controversial is Musk’s huge compensation plan.
The remuneration agreement was originally drafted in 2018 with the support of a majority of shareholders, but a Delaware judge earlier this year declared it invalid.
In his ruling, the judge said Tesla’s board of directors was not transparent enough to investors and did not represent the best interests of investors.
Glass Lewis called Musk’s salary “excessive” and criticized Musk for running too many businesses at the same time.
Tesla said in response that the salary agreement “inspires” Musk to achieve “extraordinary growth” and that “shareholders should be very concerned about value creation rather than guessing whether Musk is focused enough.
” Musk has been a strong critic of Glass Lewis and Institutional Shareholder Services (ISS), another influential agency consulting firm.
In January 2023, Musk posted on social media that too much power was concentrated in the hands of them (these companies),”because there are too many passive/index funds in the market that outsourcing shareholder voting power to them”,”ISS and Glass Lewis actually control the stock market.
“, In addition, the CEO of Calpers, the largest state public pension fund in the United States, also said it plans to vote against Musk’s pay plan.
In response, on May 29, Musk also hit back, saying that the fund had “reneged on its promise.
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