Glass Lewis report on shareholder voting rights, “Excessive compensation, dilution effect on stock value”,
Elon Musk, CEO of Tesla. Reuters,
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, ‘Tesla, the U.S. electric car company, is planning to discuss at next month’s shareholders’ meeting the agenda of granting a total of $56 billion (approximately 76 trillion 80 billion won) worth of stock options to Elon Musk, CEO, with one shareholder advisory firm opposing the proposal.’,
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, ‘According to Reuters on the 26th (local time), Glass Lewis, a major U.S. shareholder advisory firm, recommended that Tesla shareholders reject the compensation package for Musk in a report released the day before. Glass Lewis pointed out that such compensation is “excessive” and could dilute Tesla’s per-share value and concentrate ownership when stock options are exercised.’,
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, ‘Glass Lewis mentioned Musk’s acquisition of what is now Twitter’s predecessor X in October 2022, stating that “Musk documented plans for a project that would take an enormous amount of time regardless of the company’s operation prior to Tesla’s compensation agreement in 2018.”‘,
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, ‘Bloomberg noted that this recommendation could influence the votes of large institutional investors.’,
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, ‘Previously, Tesla’s proposal to grant Musk a total of $56 billion in stock options based on performance was approved through board and shareholder meetings in 2018. However, a lawsuit filed by a small shareholder, Richard Tornetta, seeking to invalidate it, resulted in a temporary victory in January this year, potentially reversing the decision.’,
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, ‘To prove that investors still support the compensation package for Musk, Tesla’s board has proposed a reapproval of this compensation package as an agenda item for the upcoming shareholders’ meeting on June 13. The final judgment on this lawsuit is expected to be made in July.’,
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