Proxy advisor firm Institutional Shareholder Services has once again recommended that shareholders with Tesla (NASDAQ:TSLA) vote against Chief Executive Officer Elon Musk’s compensation plan that could total $1 trillion if all the incentives are met.
“While it is recognized that the board seeks to retain Musk due to his track record and vision for Tesla’s future, and further that some shareholders may support this award in light of Musk’s successes in achieving growth of the company, there are unmitigated concerns surrounding the special award’s magnitude and design,” read a key part of the ISS report.
Shareholders will vote on the compensation package at Tesla’s (NASDAQ:TSLA) annual shareholders meeting on November 6. The shareholder resolution is anticipated to be passed by a wide margin after the board recommended voting in favor of it.
ISS also suggested that shareholders vote against the re-election of director Ira Ehrenpreis while supporting the election of directors Joe Gebbia and Kathleen Wilson-Thompson. The proxy firm also backed measures to declassify the board and reduce supermajority vote requirements. Finally, ISS also opposed a shareholder proposal that would authorize Tesla’s (TSLA) board to invest company funds in xAI (X.AI).