Tesla stands firm in support of CEO Elon Musk's $56 billion pay package. Reuters reported that the company argues that it incentivizes Musk to generate significant value for shareholders. This comes after a top proxy advisory firm and Institutional Shareholder Services (ISS) advised shareholders to vote against the proposal before Tesla's annual meeting on June 13.
Glass Lewis and ISS labeled the pay package "excessive" and raised concerns about Tesla's offering shareholders an "all-or-nothing" option.
However, Tesla contends that the compensation, approved by shareholders in 2018, is tied to the company's market value and operational achievements.
READ MORE : Proxy Advisory Firm Wants Tesla Shareholders to Reject Elon Musk's $56 Billion Pay Package
Tesla on Elon Musk's $56 Billion Pay Package
Despite a Delaware judge voiding the compensation plan in January, Tesla is pushing forward with its defense, emphasizing that a new pay package would be more costly for shareholders.
According to Tesla, honoring the original agreement is essential, as Musk has already fulfilled his obligations. Additionally, the company maintains that ISS's recommendation is based on a "technical misunderstanding" and fails to acknowledge Tesla's strong performance under Musk's leadership.
Elon Musk has yet to respond to Glass Lewis and ISS' remarks.
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