San Francisco, California – Tesla investors recently voted on the approval of Elon Musk’s multibillion-dollar pay package, sparking debate among institutional shareholders. Despite the majority vote in favor of the package, some shareholders expressed concerns about Musk’s leadership and the size of the award in relation to his performance.
Representing approximately 72% of Tesla’s shares, investors greenlit Musk’s $55 billion pay package. Vanguard, the largest institutional shareholder with a 7% stake in Tesla, also voted in favor of the package. However, some institutional shareholders voiced skepticism regarding the size of the stock options and raised doubts about Musk’s ability to lead the company effectively.
One such critic of Musk’s pay package is Anders Schelde, the chief information officer of AkademikerPension, a Danish pension fund. Schelde emphasized the importance of governance within Tesla and questioned whether the company would benefit from Musk’s leadership in the long run. Despite concerns raised by institutional shareholders, the pay package was ultimately approved.
During a shareholder meeting, Musk addressed concerns from institutional shareholders, highlighting the need for clear plans to ensure steady growth within the company. New York City Comptroller Brad Lander, a cosigner of a letter advising against Musk’s pay package, emphasized the importance of board oversight and a CEO focused on Tesla’s growth.
Looking forward, Lander suggested that the Tesla board hire a compensation consultant to renegotiate an incentive plan for Musk that aligns with shareholder interests. The California Public Employees’ Retirement System (CalPERS) also voiced opposition to Musk’s pay package, citing concerns about its dilutive impact on shareholder value.
Despite the ongoing debate surrounding Musk’s compensation, both Musk and Tesla have yet to provide a response or comment on the matter. As institutional shareholders continue to scrutinize the company’s governance and leadership, the future of Tesla under Musk’s guidance remains a topic of discussion within the investor community.