Tesla Hits Back at Glass Lewis After Report on Musk

Tesla Inc. blasted Glass Lewis Inc. in a letter to shareholders, days after the proxy adviser urged investors to reject a proposed $56 billion pay package for Chief Executive Officer Elon Musk.

Bloomberg
Updated30 May 2024
Tesla Hits Back at Glass Lewis After Report on Musk
Tesla Hits Back at Glass Lewis After Report on Musk

Tesla Inc. blasted Glass Lewis Inc. in a letter to shareholders, days after the proxy adviser urged investors to reject a proposed $56 billion pay package for Chief Executive Officer Elon Musk.

In the letter titled “What Glass Lewis Got Wrong About Tesla,” the electric-vehicle maker said the adviser “omits key considerations, uses faulty logic, and relies on speculation and hypotheticals.” The company urged shareholders to ignore Glass Lewis’s advice, and vote in favor of Musk’s compensation package and a company proposal to reincorporate in Texas, from Delaware.

“Tesla is one of the most successful enterprises of our time,” the letter, published Wednesday, said. “We have revolutionized the automotive market.”

The EV maker’s board has been working to rally shareholder support ahead of its June 13 annual meeting. The most controversial proposal investors are being asked to weigh is Musk’s large compensation package. The pay deal was initially crafted — and supported by most shareholders — in 2018, but a Delaware judge nullified it earlier this year. In her ruling, she said the board wasn’t transparent enough with investors, and it wasn’t in their best interest.

Over the weekend, Glass Lewis called the payout “excessive” and criticized Musk for committing to run too many ventures at once. In its response, Tesla said the compensation agreement “motivated” Musk to achieve “extraordinary growth.”

“Stockholders should care enormously about value creation,” the Tesla letter said. “And not about whether Elon’s perceived ‘focus’ was strong enough.”

Read More: Tesla’s Slump Exposes Elon Musk’s Distractions Across His Empire

Musk has been a loud critic of companies like Glass Lewis and Institutional Shareholder Services Inc., another influential proxy advisory firm. He posted on social media in January 2023 that too much power is concentrated in their hands, “because so much of the market is passive/index funds, which outsource shareholder voting decisions to them.”

“ISS and Glass Lewis effectively control the stock market,” Musk wrote.

On Wednesday, Musk also slammed Calpers, the largest state public pension fund in the US, after its CEO said she planned to vote against the pay package. In a post on X, Musk accused Calpers of “breaking their word.”

This article was generated from an automated news agency feed without modifications to text.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeNewsworldTesla Hits Back at Glass Lewis After Report on Musk

Most Active Stocks

Bharat Electronics

309.55
10:29 AM | 14 JUN 2024
8.6 (2.86%)

Indian Oil Corporation

170.30
10:25 AM | 14 JUN 2024
1.2 (0.71%)

HDFC Bank

1,597.45
10:28 AM | 14 JUN 2024
16.55 (1.05%)

State Bank Of India

840.20
10:29 AM | 14 JUN 2024
-3.7 (-0.44%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

JK Paper

490.70
10:25 AM | 14 JUN 2024
44.35 (9.94%)

KRBL

310.05
10:22 AM | 14 JUN 2024
23.05 (8.03%)

Poly Medicure

2,003.00
09:59 AM | 14 JUN 2024
142.9 (7.68%)

KEC International

935.20
10:25 AM | 14 JUN 2024
66.25 (7.62%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    73,806.00577.00
    Chennai
    73,806.00148.00
    Delhi
    73,735.00291.00
    Kolkata
    73,088.00-141.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    99.84/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanGet App