WASHINGTON, June 05 (Reuters): Prominent investor Ron Baron has come out in support of Tesla CEO Elon Musk's $56 billion pay package, which is up for a shareholder vote next week, according to an open letter from the Baron Capital founder on Tuesday.
Musk's enormous pay, approved in 2018 but voided by a Delaware judge earlier this year, remains contentious.
Musk and the Tesla board have argued that the compensation, primarily in stock awards tied to Tesla achieving specific milestones, ties executive incentives to growth at Tesla.
However, some shareholders view the package as excessive. Proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis have urged shareholders to vote against it in its current form.
"Elon is the ultimate 'key man' of key man risk," Baron said. "Without his relentless drive and uncompromising standards, there would be no Tesla."
Tesla investor Ron Baron backs Musk's $56b pay plan
FE Team | Published: June 06, 2024 00:58:08
Tesla investor Ron Baron backs Musk's $56b pay plan
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