Tesla shareholders should reject a compensation plan that could pay Elon Musk more than $1 trillion over the next decade, proxy advisory firm Institutional Shareholder Services (ISS) said in a report Friday.
The plan is designed “to retain Musk and keep his time and attention on Tesla instead of his other business ventures,” but “there are no prescriptive elements within the award to ensure his focus and time remain on Tesla as opposed to his other ventures, undermining the award’s primary rationale,” the advisory firm said in a report for its clients.
The “astronomical grant value” awarded to Musk could dilute value for other shareholders “due to the extreme value and number of shares being granted,” and it is questionable whether the award “is necessary or appropriate to further align his interests [with Tesla] when he currently holds a 19.8 percent ownership stake in the company,” ISS said.
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