Tesla CEO Elon Musk’s $56 billion payday that will be voted on by shareholders at an upcoming meeting is still the biggest issue at hand for investors. Proxy firms are advising shareholders to vote one way or another, but one is using odd arguments to keep Musk from getting paid.
Glass Lewis, a proxy firm, urged Tesla investors over the weekend to reject Musk’s $56 billion pay package using some strange reasons like its “excessive size” and his “slate of extraordinarily time-consuming projects.”
The firm also said moving the company to Texas would not be ideal as it would present Tesla investors with “uncertain benefits and additional risk.”
Reuters initially reported the story.
Musk was due $56 billion as part of the 2018 shareholder meeting where investors voted to give the CEO the massive payday if he came through on various company goals, like stock price and valuation. He did so.
But earlier this year, Delaware Judge Kathaleen McCormick ruled against Musk in a suit that was brought on by a small-time shareholder. The pay package was avoided, and Tesla is seeking to have it re-approved.
There are major implications from the vote, and Tesla could end up losing Musk as a CEO and perhaps its footing as a company without him.
Some shareholders believe it is a no-brainer, while others think it may be time for a change of tone from the electric automaker, which has been widely recognized as the leader of the sector for several years.
The company’s largest retail stockholder, KoGuan Leo, is pushing for the pay package to be rejected.
KoGuan has called some Tesla shareholders “brainless suckers.” His $3.5 billion spent to own Tesla shares is the largest stake from a retail perspective; what he says is a 0.8 percent stake in the company.
Glass Lewis’s arguments against Musk’s pay package are definitely strange, considering who is asked.
The size of it is absolutely large, but excessive could be considered a matter of opinion. Some shareholders undoubtedly believe Musk is worth every penny.
Additionally, the argument against his workload does not seem to weigh in the fact that Musk has also balanced SpaceX, Neuralink, and other intense projects simultaneously for years.
The firm also voted against Kimbal Musk’s re-election to the Board but recommended James Murdoch remain a member.
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