Tesla shareholders asked to vote against Elon Musk’s pay package

Tesla shareholder meeting is scheduled for June 13, and a proxy advisory firm, Glass Lewis, recommends that stockholders vote against CEO Elon Musk’s proposed $46 billion pay package.

In the 71-pager, Glass Lewis expressed concerns that the compensation plan could dilute existing Tesla holdings and significantly increase Musk’s ownership, making him the largest shareholder.

It also advised against moving Tesla’s incorporation to Texas.
Musk’s compensation plan includes a 10-year stock option grant. It was approved in 2018 but later rescinded by a Delaware court, citing approval process concerns and Musk’s close ties with board members.

For the pay package to be approved, a majority vote—excluding Musk’s 13% stake and his brother’s smaller stake—is required, per the Wall Street Journal.

In other Elon Musk news
His artificial intelligence startup, xAI, reportedly plans to build a supercomputer by 2025 in a potential partnership with Oracle to power the next version of its AI chatbot, Grok.

xAI aims to rival Microsoft-backed OpenAI and Google’s Gemini. In March, he sued OpenAI (a company he co-founded) and its CEO, Sam Altman, for alleged breach of contract.