Investing
Tesla stands by Musk pay after ISS urges shareholders to reject package By Reuters
![](https://personalfinancedefined.com/wp-content/uploads/2023/09/LYNXMPEDAR1N9_L.jpg)
(Reuters) – Tesla (NASDAQ:) on Monday defended a proposal to ratify CEO Elon Musk’s $56 billion pay package and said a new compensation would be costlier, days after a top proxy advisory firm recommended shareholders to vote against the proposal.
The electric-vehicle maker argued that his pay package – one of the biggest in corporate America – motivated Musk to create “tremendous value” for shareholders.
This was in response to Institutional Shareholder Services (ISS) last week calling the pay “excessive”, while raising concern over Tesla offering its shareholders an “all or nothing” option ahead of a vote at their annual meeting on June 13.
The compensation, set and approved in 2018 by shareholders, rewards based on Tesla’s market value and operational milestones.
But a Delaware judge voided it in January, and Tesla has since then sought to move its state of incorporation to Texas.
The company said in its Monday filing that shareholder recommendation by ISS is based on a “technical misunderstanding” and that the advisory firm recognized the company’s strong performance under Musk.
Under Delaware law, ratification means that the proposal is either accepted or rejected in its entirety, Tesla said, adding that a new pay package would be costlier to the shareholders.
“A functionally equivalent grant of new options could result in an accounting charge of more than $25 billion, compared to the $2.3 billion charge originally recognized for the 2018 award,” it said.
“A deal should be a deal. He delivered on his end of the bargain. It’s time for us to deliver on ours.”
Read the full article here
![](https://personalfinancedefined.com/wp-content/uploads/2023/02/pf-logo.png)
-
Investing6 days ago
Mark Zuckerberg Reveals the Future Meta AI, Tech Industry
-
Investing5 days ago
Floor & Decor Holdings stock slides after Spruce Point short report By Investing.com
-
Personal Finance4 days ago
Today's mortgage rates rise for 15- and 30-year terms | July 2, 2024
-
Passive Income4 days ago
What’s Former ‘Jeopardy!’ Host Mayim Bialik Up to Now?
-
Side Hustles6 days ago
A Buddy’s Franchise is Built for Success in a Recession Resistant Industry
-
Passive Income6 days ago
Warren Buffett Changes His Will, Gates Foundation Donations
-
Investing5 days ago
Don’t Miss Your Chance to Get PDF Expert for $80
-
Side Hustles6 days ago
The Key to Preparing Your Business for an Eventual Investment or Sale