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Tesla criticizes Glass Lewis over CEO pay

Tesla criticizes Glass Lewis over CEO pay

Tesla Criticizes

Tesla has sharply criticized the advisory firm Glass Lewis for recommending that shareholders vote against CEO Elon Musk’s $55 billion compensation package. In a letter to shareholders, Tesla accused the firm of “scaremongering” and using “faulty logic.”

Glass Lewis recently described the pay package as “excessive” and advised investors to reject Tesla’s plan to move its incorporation from Delaware to Texas. Tesla argued that rescinding the compensation award is “absurd” and accused Glass Lewis of ignoring significant market value created for investors between 2018 and 2023.

The response comes ahead of a crucial shareholder meeting where Tesla is seeking approval for both the compensation plan and the moving of its incorporation. Tesla has been encouraging shareholder participation, offering perks such as a tour of the Texas Gigafactory with Musk in exchange for proof of voting.

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Tesla disputes Glass Lewis over pay

Institutional investors have increasingly scrutinized Tesla’s proposals.

The CEO of CalPERS, the largest public pension fund in the US, announced plans to vote against the compensation package. A group of shareholders also filed a letter with the Securities and Exchange Commission urging investors to oppose the re-election of James Murdoch and Kimbal Musk to Tesla’s board. Tesla maintains that the compensation package is essential for its future success and has engaged in extensive efforts to garner support for the plan. A request for comment from Glass Lewis went unanswered.

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