ISS, the world’s largest proxy advisory firm, has recommended that Tesla shareholders vote against the $1 trillion (1,420 trillion won) compensation package for CEO Elon Musk.
According to the Wall Street Journal and Bloomberg News on the 17th (local time), ISS stated in a report that Tesla shareholders should oppose both the $1 trillion compensation package for Musk and the proposed investment in Musk’s AI company, xAI.
Last month, the Tesla board of directors proposed a compensation plan that would grant Musk approximately 420 million shares over 12 tranches by 2035, depending on future business performance. Despite opposition from proxy advisory firms, Tesla shareholders have previously supported Musk’s compensation packages.
The Tesla annual shareholders’ meeting will be held on the 6th of next month. For the proposal to pass, it must receive a majority of the votes cast, and Musk will be able to vote with his current 13.6% stake.
U.S. media outlets report that Tesla’s latest compensation package is designed to significantly boost the company’s stock price, making it popular among shareholders.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
