• Tesla investors voted on Thursday to approve Elon Musk’s multibillion-dollar pay package.
  • However, some institutional shareholders told BI that Musk’s award was a mistake.
  • One investor questioned if Musk is the right person to continue leading Tesla.

Several institutional Tesla shareholders expressed regret over approving Elon Musk’s $55 billion pay package, raising concerns about his leadership. Despite 72% of shareholders voting in favour, the package, previously struck down by a Delaware court, remains controversial. Vanguard, Tesla’s largest institutional shareholder with a 7% stake, voted for the package.

Anders Schelde of AkademikerPension criticized Tesla’s governance and questioned Musk’s role. AkademikerPension and other investors had previously urged shareholders to vote against Musk’s pay package and the reelection of James Murdoch and Kimbal Musk to Tesla’s board. Both were retained.

During the shareholder meeting, Musk dismissed institutional concerns, suggesting investors should try Tesla’s self-driving technology. New York City Comptroller Brad Lander called for stronger board oversight and a CEO focused on Tesla’s growth, suggesting a renegotiation of Musk’s incentive plan.

CalPERS, owning 9.2 million Tesla shares, also opposed the package, calling it excessive and dilutive to shareholders. CalPERS CEO Marcie Frost stated that Musk’s compensation is disproportionate compared to peers and not aligned with Tesla’s long-term profitability.

Neither Musk nor Tesla responded to requests for comment.