Proxy firm advising against Tesla CEO Elon Musk's $46 billion pay package, facing potential resistance.

From CNBC: 2024-05-27 02:23:57

Tesla CEO Elon Musk’s $46 billion pay package is facing resistance from proxy advisory firm Glass Lewis & Co., who advised shareholders to reject the plan. Concerns include the excessive size, potential stock dilution, and Musk’s ability to handle multiple projects.

Previously approved in 2018, Musk’s compensation package was voided in January by a Delaware court. It consisted of stock options tied to reaching specific market cap, revenue, and profit targets. Glass Lewis had similar concerns in 2018 about Musk’s proposed pay package.

Tesla shareholders are closely scrutinizing Musk’s compensation package due to its size and concerns about board independence. With a mixed consensus rating and an average price target of $174.60, Tesla stock is facing a downside potential. Year-to-date, the stock is down about 28%.

Investors interested in TSLA stock may want to consider following analyst Ben Kallo, who has a successful track record covering the stock. Ben Kallo boasts an average return of 19.03% per rating and a 56% success rate.



Read more at CNBC: Tesla (TSLA): Another Hiccup Between Musk and His $46B Pay