Shareholder advocate argues that Musk’s Tesla pay package is too high and should be rejected

Glass Lewis, a proxy adviser firm, has once again raised concerns about Tesla CEO Elon Musk’s pay package ahead of the company’s upcoming shareholder meeting on June 13. The firm stated that Musk’s ownership stake in Tesla would increase from 12.9% to 22.4% if the pay package is approved by shareholders.

In a report issued over the weekend, Glass Lewis highlighted its concerns about the size of Musk’s compensation, calling it excessive and dilutive to disinterested shareholders. The firm had previously raised similar concerns in 2018 when the pay package was first granted.

Furthermore, Glass Lewis criticized Tesla’s proposal to move its state of incorporation to Texas, calling it unwarranted at this time. The firm also compared Musk’s compensation to other companies in the S&P 100 and S&P 500 automotive sector, noting that the dilutive effect of Musk’s package was significantly higher.

Musk’s 2018 pay package, which was rescinded by a Delaware judge earlier this year, was valued at around $56 billion. Glass Lewis now estimates that Musk’s current package is worth approximately $44.9 billion.

Analysts predict that Tesla’s shareholder meeting on June 13 could be a volatile event, with Wall Street closely watching the outcome of the vote on Musk’s pay package. Despite the controversy surrounding the package, some analysts believe that shareholders will ultimately approve it.

Overall, Glass Lewis’s latest report adds to the ongoing debate about Musk’s compensation and the potential impact it could have on Tesla’s future direction and shareholder value.