Tesla swiftly responded to Glass Lewis' recommendation for shareholders to oppose the company's $56 billion pay package plan.
Tesla Slams Glass Lewis Over Alleged 'Scaremongering'
Tesla strongly criticized Glass Lewis in a letter to shareholders, accusing the firm of using scare tactics and flawed reasoning.
The automaker responded to various allegations made in Glass Lewis' extensive 71-page report, which was released on Saturday and initially covered by Bloomberg.
According to Yahoo, the pay package approved in 2018, but later struck down by a Delaware judge in January, was deemed "excessive" by Glass Lewis.
The advisory firm also recommended that investors reject Tesla's proposal to relocate its incorporation from Delaware to Texas. Tesla dismissed the firm's claim of rescinding the award as "absurd."
The company dismissed Glass Lewis' concerns about relocating the company's state of incorporation to Texas as baseless and criticized the firm's doubts about Elon Musk's dedication to the company.
They highlighted the CEO's track record of generating significant market value for investors from 2018 to 2023.
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CalPERS Joins Critics of Tesla CEO's Compensation Plan
CalPERS is among the many investment funds that have publicly stated their intention to vote against Tesla's pay package.
On May 21, a group of shareholders submitted a letter to the Securities and Exchange Commission, urging investors to vote against Musk's pay package and the proposal to reelect James Murdoch and Kimbal Musk, Business Insider reported.
In a recent report, Glass Lewis, a proxy advisory firm, expressed concerns about the pay plan, describing it as "excessive" and highlighting the potential for uncertain benefits and additional risk for investors.
On Wednesday, the company started providing investors with the opportunity to visit Tesla's Texas gigafactory with Musk in exchange for proof of voting prior to the annual shareholder meeting.
Tesla has emphasized that the compensation plan is vital for the future success of the company. They have gone as far as funding a few advertisements to promote the pay plan.
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