Reported 4 months ago
Shareholder advocate Glass Lewis deems Elon Musk's Tesla pay package as 'excessive' and recommends shareholders vote against it, as it would significantly dilute their positions. Musk's ownership stake would increase from 12.9% to 22.4% if approved. Glass Lewis previously raised concerns about Musk's compensation in 2018, emphasizing the hefty size of the award and its dilutive effect. The advisory firm also questions Tesla's move to change its state of incorporation to Texas. Musk's 2018 pay package, valued at around $56 billion, was rescinded by a Delaware judge this year, and Glass Lewis now estimates his current package at $44.9 billion. The firm compared Musk's stock award's dilutive effect to other megacap companies, showing a significant impact. Musk has threatened to halt high-value tech projects if he doesn't gain approximately 25% ownership control of Tesla, leading to expected volatility around Tesla's June 13 shareholder meeting.
Source: YAHOO