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Tesla's US$2.6b award to Musk too costly, Glass Lewis says
[NEW YORK] The world's second-biggest proxy adviser recommended that Tesla shareholders turn down a plan to grant Elon Musk a US$2.6 billion award, sapping the company's effort to assure investors that the co-founder isn't leaving anytime soon.
The award, which could give chief executive officer Musk an additional 12 per cent of the company's shares, is too costly and will dilute other investors, Glass Lewis & Co said Monday in a report to clients. Tesla needs majority shareholder approval to make the grant.
Supporters have praised the compensation plan as a signal that Mr Musk will remain at Tesla and that his other ambitions won't take priority over stock returns. To some, the 10-figure package has raised questions about whether it's really aimed at motivating Mr Musk, who's already a billionaire, or a very expensive way of calming investors concerned that he'll abandon the maker of electric cars for one of his other ventures.
A Tesla representative didn't immediately respond to a request for comment.