Several major investors, including CalPERS and Norges Bank Investment Management, have voiced strong opposition to the $56 billion compensation package for Tesla CEO Elon Musk. A Delaware judge previously voided the package, criticizing its enormity and questionable approval process.
The pay package, initially approved in 2018, linked Musk’s earnings to Tesla’s financial and operational milestones. Despite Tesla meeting these milestones, investors and pension funds argue that the package fails to justify its scale with the electric car maker’s performance, particularly noting Musk’s divided attention due to his involvement with multiple other companies.
The criticism extends beyond financial concerns, touching on issues of corporate governance. Shareholders argue the package is not only excessive but also risky, presenting uncertain benefits. The controversy has heightened as Tesla pushes for votes on reinstating the package and other governance issues at the upcoming annual meeting.
