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The
report cited reasons like the "excessive size" of the pay deal,
the dilutive effect upon exercise and the concentration of
ownership. It also mentioned Musk's "slate of extraordinarily
time-consuming projects" which have expanded with his
high-profile purchase of Twitter, now known as X.
The pay package was proposed by Tesla's board of directors,
which has repeatedly come under fire for its close ties with the
billionaire. The package has no salary or cash bonus and sets
rewards based on Tesla's market value rising to as much as $650
billion over the 10 years from 2018. The company is currently
valued at about $571.6 billion, according to LSEG data.
In January, Judge Kathaleen McCormick of Delaware's Court of
Chancery voided the original pay package. Musk then sought to
move Tesla's state of incorporation to Texas from Delaware.
Glass Lewis also criticized the proposed move to Texas as
offering "uncertain benefits and additional risk" to
shareholders.
Tesla has urged shareholders to reaffirm their approval of the
compensation.
In an interview this month, Tesla's board chair Robyn Denholm
told the Financial Times that Musk deserves the pay package
because the company hit ambitious targets for revenue and its
stock price.
Musk became Tesla CEO in 2008. In recent years, he has helped
improve results, taking the company to a $15 billion profit from
a $2.2 billion loss in 2018 and seven times more vehicles have
been produced, according to an online campaign website, Vote
Tesla.
The proxy advisor also recommended shareholders vote against the
reelection of board member Kimbal Musk, the billionaire' s
brother while former 21st Century Fox CEO James Murdoch
re-election was recommended.
(Reporting by Urvi Dugar in Bengaluru; Editing by David
Gregorio)
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