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Tesla Shareholder Group Calls for Vote Against Musk Pay Package

Dow Jones05-21

A group of Tesla shareholders which includes New York City Comptroller Brad Lander is calling for investors to vote against Elon Musk's $46 billion pay package.

The group of shareholders wrote to other Tesla holders arguing that the electric-vehicle maker had governance issues. They said that the company's board was too close to Musk and had failed to properly evaluate the pay package.

The letter calls for shareholders to reject the reelection of two directors, Kimbal Musk and James Murdoch, arguing that they have particularly close personal ties to Musk.

Shareholders are set to vote on Musk's pay package and other proposals, including moving its incorporation to Texas, on June 13. Tesla's massive compensation package for Musk was originally proposed and approved in 2018, but was struck down by a Delaware court in January.

Tesla has since re-proposed the pay package, which is currently valued at around $46 billion, in its proxy filing and has looked to convince shareholders to support the measure.

In their letter, the shareholder group argues that Tesla's board is stacked with allies of Musk, and the body has not properly held the chief executive to account, even as he spreads his time among the multiple companies he leads. Kimbal Musk is Elon's brother and has served on the board for two decades, while Murdoch is a personal friend, the letter says.

Murdoch's family has a controlling stake in News Corp, which owns Wall Street Journal publisher Dow Jones.

The group of shareholders also includes SOC Investment Group, union-owned Amalgamated Bank, United Church Funds, Nordea Asset Management and AkademikerPension, a Danish pension fund.

Lander, as NYC comptroller, oversees the city's public pension funds.

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Comment8

  • Solid Rock
    ·05-21
    I would also vote agst the Pay package and move to Texas if TigerBrokers give the choice to investor here. There is no one who want such high pay. Look at Nvidia, BYD, TSMC, and the magniifcent 7, there is no such precedent.
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  • Smert
    ·05-21
    No Musk, no Tesla. If breaking contracts is the norm what structure is left for innovating  and enterprise? Musk should follow Jobs way. Leave if package not approved. Focus on his other companies. Public company good for fund raising. Nightmare to manage. 
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  • lzlie.
    ·05-21
    Share your opinion about this news…
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  • BB J
    ·05-21
    Sometimes, we don't know what we don't know!!~Socrates
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    • BB J
      Thanks
      05-21
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  • AlanTLK
    ·05-21
    #FUKDowjones part of conspiracy against the EV movement. Will propagate any negative news that are anti-EV
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  • Zash
    ·05-21
    Will wait and see.
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  • Dr Rck
    ·05-21
    Is the pay package conditional, meaning if TSLA continues to hit a certain stock value by a certain period of time? If so, then it's warranted because it is performance driven but to just hand out this huge amount will land the company into disaster. Already, it's burning cash due to poor outlook and auto sales, plus other new developments and the compensation for EM will definitely be unsightly both from the viewpoint of investors and operational sustenance! 
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    • Dr Rck
      TSLA stock price need to rise now in order to support EM pay package so brace for an uptick!
      05-22
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