A large consulting firm is recommending Tesla investors to vote against the re-election of two board members running for re-election: James Murdoch and Elon Musk’s younger brother Kimbal Musk. “The votes against James Murdoch and Kimbal Musk are justified because of concerns about excessive compensation for appointed executive officers and non-executive directors.” Thus the Institutional Shareholder Services (ISS) in a note dated 24 September to clients.
Tesla: how the board is composed
Tesla’s board has nine members. Murdoch and Kimbal Musk, both 48, are the two candidates in office for re-election. Tesla will hold its annual shareholder meeting on October 7 from its new factory in Austin, Texas. Private investor Antonio Gracias will not stand for re-election and will not be replaced. Murdoch, the son of media mogul Rupert Murdoch, was the CEO of 21st Century Fox from 2015 to 2019. Kimbal Musk is a food entrepreneur who also sits on Elon Musk’s SpaceX board of directors. The ISS said directors have received “abnormal levels of pay without compelling logic” and that there is no explanation as to why the magnitude of option bonuses is “so large, greater than the pay of directors of companies in equal level “. “Robyn Denholm and Hiromichi Mizuno received a total compensation of $ 5.76 million and $ 9.23 million, respectively, while outgoing director Antonio Gracias received a compensation of $ 1.19 million,” according to the report. . “In any event, most of this compensation was in the form of stock option grants valued by the company at $ 5.63 million for Denholm, $ 9.21 million for Mizuno and $ 1.16 million for Gracias “.