Advisory firm tells shareholders to reject Elon Musk’s $56 billion pay package

A company called Glass Lewis said on Saturday that it’s advising people who own parts of Tesla, called shareholders to say “no” to a big $56 billion paycheck for Elon Musk, the person in charge of Tesla. If this money gets approved it would be the biggest paycheck ever given to a boss in a big company in America.

They are saying “no” because they think the paycheck is too big and could make Tesla worth less for everyone else who owns part of it. Also Elon Musk is doing a lot of big projects that take up a lot of his time like buying the social media platform Twitter.

This big paycheck idea came from the people who help make decisions for Tesla called the board of directors. Some people have been criticising them because they are very close to Elon Musk who is really rich. This paycheck does not give Elon Musk a regular salary or bonus. Instead he gets money if Tesla becomes worth a lot more over the next 10 years.

Before, a judge said this big paycheck plan wasn’t okay. Then, Elon Musk wanted to move Tesla’s main office to a different state, from Delaware to Texas.

Glass Lewis also doesn’t like the idea of moving Tesla’s office to Texas. They think it might not be good for people who own part of Tesla.

But Tesla is saying to the shareholders, “Please say ‘yes’ to this paycheck.”

Someone from Tesla’s board said Elon Musk should get this big paycheck because he’s helped Tesla make a lot more money and build more cars.

This person also said that people should vote to keep the people who help make decisions for Tesla except for Elon Musk’s brother, Kimbal Musk. Glass Lewis doesn’t think he should keep his job. But they think another person, James Murdoch, should stay.