Tesla (NASDAQ:TSLA) stock is slipping on Tuesday after proxy advisor firm Glass Lewis urged the company’s investors not to approve a $56 billion pay package for founder and CEO Elon Musk.
This pay package wouldn’t contain a salary or a cash bonus for Musk. Glass Lewis believes the size of the pay package is too large and warns it could have “uncertain benefits and additional risk” for shareholders.
Another problem that Glass Lewis highlights is Musk’s work with other companies. That includes his X social media platform. The firm also recommends investors against voting Elon’s brother Kimbal Musk back onto its Board of Directors.
Adding to this is Glass Lewis advising investors against approving Tesla’s plans to move its corporation out of Delaware. Musk wants to switch its incorporation to Texas. This comes after a Delaware judge voided his previous pay package.
TSLA Stockholder Meeting
All of these matters will be up for vote during the company’s next shareholder meeting. That’s set for June 13. The pay package and corporate move both need majority approval from investors. The pay package one excludes the stakes held by Elon and Kimbal Musk. Uncast votes will also count as “no” votes.
TSLA stock is down slightly as of Tuesday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
