WASHINGTON (dpa-AFX) - A group of Tesla, Inc. (TSLA) shareholders is urging
investors to vote against CEO Elon Musk's $46 billion compensation package,
citing it as detrimental to the company's best interests.

The group is also appealing to investors to reject the reelection of board
members Kimbal Musk, Elon's brother, and James Murdoch, a former executive at
media company Twenty-First Century Fox.

The SEC letter, sent by New York City Comptroller Brad Lander and investors such
as Amalgamated Bank, AkademikerPension, Nordea Asset Management, SOC Investment
Group, and United Church Funds, highlighted Musk's public disputes with
regulators, Twitter acquisition, controversial remarks, and legal issues
tarnishing Tesla's reputation.

The shareholder group emphasized that ratifying Musk's pay package would not
advance Tesla's long-term growth and stability. In a letter, the group expressed
concerns about Tesla's lagging performance compared to competitors and the
broader market, attributing it to Musk's numerous projects and controversial
decisions, including the acquisition of Twitter.

The letter also stated that approving the compensation package could lead to
lawsuits alleging corporate waste, given Musk's perceived divided attention as a
part-time CEO. The group argued that the excessive nature of the award lacks
incentivization and might pave the way for future compensation requests from
Musk.

Citing poor management oversight of worker conditions, safety violations, and
discrimination lawsuits, the shareholder group criticized the board's lack of
effective governance and its push to reinstate the 2018 Pay Package without
modifications.

Initially valued at $56 billion, the pay package's stock options were recently
appraised at $46 billion. Stockholders are scheduled to vote on the proposed
changes at the annual meeting on June 13.



Copyright(c) 2024 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX