Tesla shareholders are being urged to vote against Elon Musk's $58 billion pay package after a Delaware court voided the 2018 award; Glass Lewis recommends opposing the pay award, with a meeting set for June 13 for additional disclosures.
Tesla (NASDAQ:TSLA) shareholders were ‘urged’ to deny Elon Musk a bumper $58 billion pay package, which was first instated back in 2018.
Glass Lewis a shareholder ‘proxy’ advisor is recommending shareholders vote against the pay award that was brought back into contention by a Delaware court which voided the 2018 award – which gave Musk access to some 300 million options over Tesla shares.
The court claimed that the Tesla board had not adequately disclosed potential conflicts of interest between Musk and the board.
Now, a new vote will go in front of shareholders with additional disclosures at a meeting to be held on 13 June.
If shareholders vote against it, then Musk’s pay package – including the validity of his options would potentially be reset.
In the current form, the pay deal effectively gives Musk control over around 20% of Tesla.
Back in 2018, proxy advisors like Glass Lewis voted against the original pay deal, but more than 70% of Tesla stockholders backed Musk.
