According to media reports, proxy advisory firm Glass Lewis has recommended that Tesla shareholders reject Chief Executive Elon Musk's multi-billion dollar compensation package at next month's meeting.
Glass Lewis stated that the compensation agreement was recently valued at $46 billion by The Wall Street Journal and that it is "too expensive in terms of both sheer amount and the dilution effect once exercised." In a 71-page report released over the weekend, the advisor also noted that the reasons provided by Tesla do not effectively address these concerns.
Tesla's board initially approved a compensation package worth approximately $55.8 billion in 2018, but that package was invalidated by a Delaware judge earlier this January. Last month, the company reintroduced a plan that includes a 10-year stock option grant.
Tesla Board Chair Robyn Denholm told Reuters earlier this month that Musk's high compensation is justified due to the ambitious revenue and stock price targets achieved under his leadership.
