Enlarge (credit: Aurich Lawson / Duncan Hull / Getty)
A Tesla shareholder group yesterday urged other shareholders to vote against Elon Musk's $46 billion pay package, saying the Tesla board is dysfunctional and "overly beholden to CEO Musk." The group's letter also urged shareholders to vote against the reelection of board members Kimbal Musk and James Murdoch.
"Tesla is suffering from a material governance failure which requires our urgent attention and action," and its board "is stacked with directors that have close personal ties to CEO Elon Musk," the letter said. "There are multiple indications that these ties, coupled with excessive director compensation, prevent the level of critical and independent thinking required for effective governance."
Tesla shareholders approved Elon Musk's pay package in 2018, but it was nullified by a court ruling in January 2024. After a lawsuit filed by a shareholder, Delaware Court of Chancery Judge Kathaleen McCormick ruled that the pay plan was unfair to Tesla shareholders and must be rescinded.
