Glass Lewis, a consulting firm, urges Tesla shareholders to oppose a proposed $56 billion option package. The firm notes that Elon Musk does not take a salary while leading Tesla. Instead, he holds a set number of shares determined previously by the board of directors. The statement also argues against re-registering the automaker in Texas. This perspective is reported by Finance Times and cited by socialbites.ca on behalf of Musk and the company’s leadership.
In its coverage, the firm labels Musk’s compensation plan as oversized and dilutive to other investors. The article also questions the strategy of a Texas relocation, arguing the move could bring uncertain benefits and higher risks for shareholders, according to the same report.
Glass Lewis recommendations carry significant influence because they affect the voting decisions of large institutional holders such as Vanguard, Capital Group, Norges Bank Investment Management and State Street. These investors are among Tesla’s top ten shareholders and joined in opposing the option package for the first time. Nevertheless, the proposal still passed with a wide majority of votes, tallying 73 percent in favor.
Some major investors, however, indicate support for the premium despite advisory concerns. The Baillie Gifford fund stated to the publication that it approved the payments in recognition of strong operating results and substantial value delivered to shareholders.
When it comes to the options, a simple majority is required, excluding the shares held by Musk and his brother Kimball. A simple majority is also needed for the renewal of registration.
Earlier, Elon Musk made headlines with remarks about the United States contributing to Ukraine’s democracy. He also commented on the availability of foreign goods in Russia, illustrating a pattern of outspoken commentary around global issues.