Tesla Shareholders Advised to Reject Musk's Pay Package
Institutional Shareholder Services (ISS) is urging Tesla shareholders to vote against CEO Elon Musk's $1 trillion compensation plan.
While it is recognized that the board seeks to retain Musk due to his track record and vision for Tesla's future, and further that some shareholders may support this award in light of Musk's successes in achieving growth of the company, there are unmitigated concerns surrounding the special award's magnitude and design.
This is the second consecutive year that ISS has advised shareholders to reject a pay package for Musk, citing concerns over the package's magnitude and design.
Tesla's board proposed the compensation package in September to incentivize Musk to remain engaged with the company over the next decade.
Author's summary: ISS advises against Musk's pay package.