Elon Musk attends the 2024 Breakthrough Prize Ceremony at Academy Museum of Motion Pictures on April 13, 2024 in Los Angeles, California.
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Top proxy advisor Institutional Shareholder Services on Friday recommended Tesla shareholders vote against the re-approval of CEO Elon Musk’s $56 billion pay package and withhold their support from the re-election of News Corp. scion James Murdoch to the automaker’s board.
The report, a copy of which was obtained by CNBC, comes after the other influential proxy advisor service, Glass Lewis, also recommended shareholders vote against Musk’s pay package. Tesla’s board is seeking shareholder approval to reinstate Musk’s pay after a Delaware court voided the package earlier this year.
ISS said “cautionary” shareholder support was merited for Tesla’s effort to reincorporate out of Delaware and into Texas, although the proxy advisor also warned that there are “some concerns” over how Tesla’s board decided to reincorporate and over the “unknown” nature of Texas’s business law framework.
This is a developing story. Please check back for updates.
