According to foreign media reports, Glass Lewis & Co.
, a large agency consulting firm, has urged Tesla shareholders to reject the $56 billion salary package provided to Tesla CEO Elon Musk.
On May 25, Glass Lewis made the recommendation in a report, citing the “oversize” of the compensation package and the dilution effect it would have when exercised.
Glass Lewis said in the report: “Mr.
Musk’s series of time-consuming projects unrelated to Tesla were documented before 2018, but this situation worsened with his high-profile acquisition of the company now known as X.
“, Photo source: Tesla, next month’s vote will be the second time Musk’s salary plan has been submitted to shareholders.
The remuneration agreement was originally formulated in 2018, but earlier this year, a Delaware judge declared it invalid, saying investors had not fully understood its key details.
, If Tesla’s board can prove that the compensation agreement can enjoy broad support, it may help file a legal appeal against the ruling.
On the other hand, a loss would be very embarrassing for Musk, indicating that investors have lost confidence in his leadership.
The vote is only advisory, which means Tesla can choose to ignore it.
, About three-quarters of investors supported Musk’s pay deal six years ago.
Glass Lewis advised them to reject the plan, arguing that it would be too costly and dilute the interests of other shareholders.
, Tesla has been seeking to counter public criticism of Musk’s pay with a campaign to win shareholder support.
Tesla Board Chairman Robyn Denholm is currently in contact with large institutional investors, while the “Vote Tesla” website is calling on the company’s retail shareholders to support the plan.
In addition, Tesla also asked shareholders to vote next month on a proposal to move the company’s registration from Delaware to Texas.
Glass Lewis recommended that shareholders vote against the move and that board member Kimbal Musk, who voted against, be re-elected.
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