Investing.com -- Proxy advisory group Glass Lewis has recommended that Tesla (NASDAQ:TSLA)'s shareholders reject a proposed multi-billion dollar compensation package for Chief Executive Elon Musk at the electric carmaker's upcoming meeting next month, media reports have said.
Glass Lewis called the pay agreement, which was recently valued at $46 billion, according to the Wall Street Journal, "excessive" on both a "pure dollar basis and in terms of the dilutive effect upon exercise." In a 71-page report over the weekend, the advisor added that Tesla's "provided rationale does little to combat" these concerns.
Tesla's board of directors had originally approved a pay package worth around $55.8 billion in 2018, although it was voided by a judge in the U.S. state of Delaware in January. Last month, the company re-proposed an agreement that includes a 10-year grant of stock options.
The large size of Musk's potential compensation is justified by Tesla hitting ambitious revenue and stock price targets during his tenure at the helm of the company, Tesla's board chair Robyn Denholm told Reuters earlier this month.