Proxy advisor Institutional Shareholder Services (ISS) has recommended Tesla shareholders vote against the proposed compensation package for CEO Elon Musk.
In its guidance, ISS advised shareholders to reject the “issuance of common stock to Elon Musk pursuant to CEO performance award” at the upcoming shareholder meeting.
The proxy advisor also recommended voting against Tesla’s say-on-pay proposal and equity plan proposal, stating that support for these measures “is not warranted.”
ISS further suggested shareholders vote against the re-election of director Ira Ehrenpreis, while supporting the election of directors Joe Gebbia and Kathleen Wilson-Thompson.
On governance matters, ISS backed several shareholder proposals aimed at improving corporate governance, including measures to declassify the board and reduce supermajority vote requirements. The advisor stated that “eliminating supermajority vote requirements at Tesla would improve shareholder rights” and potentially “facilitate governance improvements if approved.”
Additionally, ISS recommended shareholders vote in favor of a proposal requiring shareholder approval for bylaw amendments adopted by the board.
The proxy advisor also opposed a shareholder proposal that would authorize Tesla’s board to invest company funds in xAI, Musk’s artificial intelligence venture.
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