Would you like to receive notifications on latest updates of the following headlines?

Proxy Form Urges Tesla Shareholders to Reject Elon Musk's $56 Billion Pay Package

POSTED ON May 28, 2024 •   BUSINESS      BY Samuel O . Adeniyi
Tesla CEO, Elon Musk | Photo Credit: Gonzalo Fuentes/Reuters

Proxy advisory firm Glass Lewis has made a strong recommendation to Tesla shareholders, urging them to oppose a proposed $56 billion pay package for Chief Executive Officer Elon Musk

If approved, this compensation package would mark the largest pay deal for a CEO in corporate America's history.

The report by Glass Lewis outlined several reasons for its recommendation, including concerns about the "excessive size" of the proposed pay package, its dilutive impact on existing shares, and the concentration of ownership it would entail. 

Additionally, Glass Lewis pointed to Musk's involvement in a range of "extraordinarily time-consuming projects," which have expanded further with his high-profile acquisition of Twitter, now known as X.

The proposed pay package was put forward by Tesla's board of directors, a board that has faced criticism in the past for its close association with the billionaire CEO.

Unlike traditional compensation arrangements, Musk's proposed package includes no salary or cash bonuses. 

Instead, it ties rewards to Tesla's market value reaching up to $650 billion over a 10-year period starting from 2018. Currently, Tesla is valued at approximately $571.6 billion according to data from LSEG.

Earlier this year, Judge Kathaleen McCormick of Delaware's Court of Chancery invalidated the original pay package, prompting Musk to pursue relocating Tesla's state of incorporation from Delaware to Texas.

Glass Lewis also expressed reservations about Tesla's proposed move to Texas, citing "uncertain benefits and additional risk" for shareholders.

Despite Glass Lewis' recommendation, Tesla has urged shareholders to reaffirm their support for the proposed compensation package. 

Robyn Denholm, Tesla's board chair, defended Musk's entitlement to the pay package in a recent interview with the Financial Times, citing the company's achievement of ambitious revenue targets and stock price growth.

Elon Musk assumed the role of Tesla CEO in 2008 and has played a pivotal role in transforming the company's financial performance. 

According to data from an online campaign website, Vote Tesla, under Musk's leadership, Tesla has transitioned from a $2.2 billion loss in 2018 to a $15 billion profit, and production has increased sevenfold.

In addition to its stance on Musk's pay package, Glass Lewis recommended shareholders vote against the reelection of board member Kimbal Musk, Elon Musk's brother. However, former 21st Century Fox CEO James Murdoch's reelection was endorsed by the proxy advisor.

READ ALSO
Nigeria-Egypt Trade Surges by 68%, Foreign Minister Highlights Trade Imbalance
BY Abiodun Saheed Omodara July 21, 2025 0

Trade between Nigeria and Egypt has seen a significant increase of 68.45 percent over the past year....

READ ALSO
Enugu State Cuts Electricity Tariff for Band A Customers to N160/kWh, Effective August 1, 2025
BY Abiodun Saheed Omodara July 21, 2025 0

The Enugu State Electricity Regulatory Commission has released a new tariff order for MainPower Elec...

READ ALSO
Naira Weakens 0.14% Despite Initial Gains, Closing at 1,532.34/$
BY Abiodun Saheed Omodara July 21, 2025 0

The naira ended the past week weaker than the week before, depreciating by 0.14% week-on-week to rea...

READ ALSO
Nigeria's Electricity Tariff Subsidy Soars to N1.94 Trillion in 2024, Marking a 219.67% Increase
BY Abiodun Saheed Omodara July 18, 2025 0

The electricity tariff subsidy from the Federal Government has increased significantly from N610 bil...

READ ALSO
Nigeria Should Aim for 60,000 Megawatts of Power Generation- Dangote
BY Abiodun Saheed Omodara July 17, 2025 0

President of the Dangote Group, Alhaji Aliko Dangote, argues that Nigeria's low electricity generati...

READ ALSO
FG Unveils Strategy to Enhance Aquaculture and Reduce Fish Imports in Nigeria
BY Abiodun Saheed Omodara July 16, 2025 0

The federal government is committed to reducing Nigeria's reliance on fish imports by enhancing loca...

READ ALSO
FG Partners CILSS to Enhance Food and Nutrition Safety in Nigeria
BY Abiodun Saheed Omodara July 16, 2025 0

The Federal Government is intensifying its initiatives to improve food and nutrition safety through...

READ ALSO
Dangote Aims to Cut Cooking Gas Prices, Plans Direct Sales to Consumers
BY Abiodun Saheed Omodara July 16, 2025 0

President of the Dangote Group, Alhaji Aliko Dangote,  has revealed intentions to lower th...

OUR CHANNELS:

Atiku's Departure Sparks Fresh Hope for PDP Aspirants
BY Abiodun Saheed Omodara July 22, 2025 0

As the race for the 2027 presidential ticket of the People’s Democratic Party (PDP) intensifie...


NMA Threatens Nationwide Strike as Ultimatum Nears End
BY Abiodun Saheed Omodara July 22, 2025 0

As the 21-day ultimatum it issued to the Federal Government approaches its end on July 23, the Niger...


IGP Urges Peaceful Protests Ahead of Retired Officers’ Demonstration
BY Abiodun Saheed Omodara July 22, 2025 0

The Inspector-General of Police (I-G), Kayode Egbetokun, has instructed Commissioners of Police (CPs...


Katsina Gov. Escapes Death in Minor Car Accident
BY Abiodun Saheed Omodara July 22, 2025 0

Katsina State Governor, Malam Dikko Umaru Radda, narrowly escaped death after being involved in a ve...


NNPP, APC Hold Primaries for Jigawa Rep By-Election
BY Abiodun Saheed Omodara July 20, 2025 0

The New Nigeria Peoples Party (NNPP) and the All Progressives Congress (APC) have held their primary...


NDLEA Seizes Cocaine and Meth in Lagos Hotel Raid, Arrest Notorious Drug Lord
BY Abiodun Saheed Omodara July 22, 2025 0

The National Drug Law Enforcement Agency (NDLEA) ramped up efforts against drug trafficking by condu...


Ogun Hospital Suspends Student Nurse, Warns Unit Head over Assault
BY Abiodun Saheed Omodara July 21, 2025 0

The Medical Director and Provost of Neuro Psychiatric Hospital in Abeokuta, Dr. Paul Agboola, &...


Lagos APC Defends Tinubu's Appointments, Slams ADC's Criticism as Malicious
BY Abiodun Saheed Omodara July 21, 2025 0

The Lagos Chapter of the All Progressives Congress (APC) has criticized the African Democratic Congr...


Police Rescue Three Kidnapping Victims, Eliminate Two Captors in Dramatic Operation
BY Abiodun Saheed Omodara July 22, 2025 0

The Ogun Police Command has successfully rescued three victims who had been kidnapped and eliminated...


Sleeping Prince' Al-Waleed bin Khalid Al-Saud Dies at 36
BY Abiodun Saheed Omodara July 22, 2025 0

Prince Al-Waleed bin Khalid Al-Saud, known as the "Sleeping Prince" in Saudi Arabia, has passed away...


More Articles

Load more...

Menu