Glass Lewis: Tesla shareholders should reject Musk’s pay deal

Tesla (TSLA) shareholders are bracing themselves for a crucial vote on June 13, which will determine the fate of Elon Musk’s pay package. The pivotal decision is not without controversy, as the Glass Lewis shareholder advisory firm is rallying shareholders to vote against the proposed compensation plan.

Yahoo Finance’s Pras Subramanian breaks down the details.

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This post was written by Angel Smith

Video Transcript

Tesla shareholders are set to vote on Ceo Elon Musk’s $56 billion pay package that’s on June 13th.

Well, there’s a group of shareholders encouraging others to vote against it.

Some new developments within this story are very unpressed.

Romanian joins us now with the latest details on that prize.

What are we learning eon?

So uh Glass Lewis, the proxy shareholder advisory firm is saying that shareholders would vote no to, to for Tesla and Musk, in particular for uh moving Tesla State of Incorporation to Texas to Texas, but also for Musk’s $56 billion pay package.

Uh The group is concerned that the the pay package would sort of dilute existing shareholders uh stakes in Tesla and that it would make Tesla make Musky the number one largest shareholder by, by quite a healthy margin.

And the the board has not provided rationale to sort of combat these concerns of, of, of overly sort of diluted nature of the, of the new pay package.

So that’s a concern there.

I’m not, we’re not surprised that glass loses would say, hey, shareholders, you should be aware of this.

We probably don’t want this for us.

To have that much control over the company and, and I think, I think that it, it, it sort of makes you think about right now from like a uh governance point of view.

Who is the board really working for?

I think that’s what, that’s what Glass Lew is saying.

Is it working for the shareholders or for Musk?

Uh We’ll see what happens later than June when the shareholder board happens.

Currently, Musk has a little less than 13% of the total shareholding uh of Tesla currently right now.

All right, pros, thank you so much as always for bringing us that news this morning.

Really appreciate it.