Glass Lewis joins Tesla contributors in rejecting Elon Musk's standard wage package

(MENAFN) Glass Lewis, a prominent consulting firm, has aligned with Tesla shareholders in opposing a proposed USD56 billion pay package for CEO Elon Musk, which, if approved, would mark the largest pay package for a CEO in the history of American companies. The firm's decision to reject the package is based on several factors, including its substantial monetary value and concerns regarding Musk's ambitious projects, which often face prolonged implementation timelines, compounded by his recent Acquisition of Twitter, now rebranded as "X."

The proposed pay package was put forth by Tesla's board of directors, which has faced ongoing criticism for its close ties to the billionaire CEO. Notably, the package lacks a fixed salary or cash bonus, instead tying bonuses to Tesla's market value, which is projected to soar to as high as USD650 billion over a decade starting from 2018.

Earlier in January, the proposal for the salary package was invalidated by Delaware District Court Judge Kathleen McCormick. However, Musk subsequently initiated efforts to relocate Tesla's headquarters from Delaware to Texas. Glass Lewis has voiced criticism of this potential move, deeming it a risky proposition for shareholders.

The rejection of Musk's pay package underscores broader concerns within the investor community regarding executive compensation and corporate governance practices. As the debate continues, the outcome of this proposal will not only impact Tesla's future trajectory but also serve as a litmus test for governance standards in the corporate world.  



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