Statement from New York City Comptroller Brad Lander on Tesla Shareholder Vote Approving Elon Musk’s Record High Pay...

Statement from New York City Comptroller Brad Lander on Tesla Shareholder Vote Approving Elon Musk's Record High Pay Package

New York, NY - New York City Comptroller Brad Lander issued a statement regarding Tesla's Annual General Meeting.

"Today Elon Musk and his crony board got the ransom Musk wanted and now shareholdersare on the hook for an indefensible compensation package, making it clear that the board has more loyalty to Musk than acting in the best interests of the company and shareholders. Although Elon Musk claims that today is more than a new chapter for the company, investors will be fed the same old story, with little evidence of real change, while Musk's power remains unchecked.

"Despite Musk's numerous dalliances with other companies and projects and rampant absenteeism, the board pressured investors at every turn to approve the compensation package or risk losing Musk's leadership. Let's be clear - this was no slam dunk for the company. The board needed to rig the system in Musk's favor to ensure a win in the event shareholders rejected the package. This egregious package is not about the long-term value of Tesla - it's about pleasing Musk - and it dilutes shareholder power by offering the board immense discretion to determine how the metrics for his compensation are being met.

"Elon Musk and the Tesla Board have positioned the pay package as an absolute necessity to keeping Musk's eye on the ball, but I'm unconvinced that the company will truly course-correct and implement the changes needed to maintain Tesla's role as an industry leader given the board's repeated failure of their most basic duties."

The New York City pension funds have repeatedly called on the board to address the clear governance failures that plagued the company, including a 2017 call on the board to appoint a full-time Chief Executive Officer. Last year, on behalf of the funds, the Comptroller's Office filed a Notice of Exempt Solicitation opposing Musk's outrageous pay package, the re-election of Kimbal Musk and James Murdoch to the board, and the board's failure to ensure a full-time CEO."

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