Tesla Stands Firm on CEO Elon Musk's $56 Billion Pay Package, Says a New Pay Package Would Be More Expensive to Shareholders

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Tesla is defending a proposal to ratify CEO Elon Musk's $56 billion pay package, which was originally set and approved by shareholders in 2018. The company argues that the compensation motivated Musk to create significant shareholder value. Tesla maintains that ISS's recommendation is based on a "technical misunderstanding" and that the advisory firm recognizes the company's strong performance under Musk's leadership. Tesla also states that under Delaware law, the proposal must be accepted or rejected in its entirety and that a new pay package would be more expensive for shareholders.