Proxy firm Glass Lewis & Co. advised Tesla Inc. shareholders to vote against giving Tesla CEO Elon Musk performance-based stock options worth about $2.62 billion, Reuters reported March 6, citing a Feb. 28 Glass Lewis report.
Using a different valuation model, the firm valued the award at about $3.7 billion, Reuters said.
Glass Lewis said Tesla offered the grant to assure investors that Musk would lead the company in the long term and that his interests were aligned with those of shareholders.
The award could boost Musk's ownership in Tesla to 28.3% of the company, according to the report, although it added that Tesla expected his shareholding to be lower than that.
However, Glass Lewis reportedly said the grant could dilute other investors and become too expensive for the manufacturer. "The cost of the grant is staggering relative to executive compensation levels among public companies worldwide," Glass Lewis was quoted as saying.
Tesla declined to comment, Reuters said.
