Proactive Investors - A second of the world's leading proxy advisors has come out against Elon Musk's US$56 billion bonus at Tesla Inc (NASDAQ:TSLA), imploring shareholders to reject the pay package.
Institutional Shareholder Services (ISS) said investors should reject Musk's record pay, claiming it is "excessive" and "outsized".
The largest-ever US pay deal was agreed upon back in 2018 but was subsequently dropped after a judge found that Tesla directors had failed to properly inform shareholders over the details.
ISS said: "Although the achievement of the grant’s performance hurdles and the substantial growth in the company’s size and profitability are fully recognized, the award value was considered outsized from the start and it has failed to accomplish certain of the board’s stated objectives from 2018."
Stakeholders will now vote on whether to approve the bonus on June 13.
Earlier this week, proxy advisory giant Glass Lewis told shareholders to reject the pay deal.
Glass Lewis said it believed the targets had failed to force Musk to refine his focus on the company, pointing to his other business pursuits such as Twitter/X, Space X and xAI.
“Mr Musk’s slate of extraordinarily time-consuming projects unrelated to the company was well-documented before the 2018 grant, and only expanded with his high-profile purchase of the company now known as X,” the report said.