New Delhi. Billionaire businessman and Tesla owner Elon Musk has been the richest person in the world for a long time. But, his troubles have increased a lot in the last few times. This includes controversies related to Tesla's investment and declining sales as well as Musk's personal life. There may be one more addition to this list and it is related to the proposed package to be given to Musk as Tesla CEO.In fact, proxy consultant firm Glass Lewis says that it has urged Tesla shareholders to reject the $56 billion pay package for Chief Executive Officer Elon Musk. If this proposal is passed, Musk will become the highest paid CEO in corporate America. The job of a proxy consultant is to advise the shareholders of listed companies on voting on annual meetings or special proposals.

What's the problem with Musk's package?

Glass Lewis said in its report that Musk's proposed amount is too high. There is no benefit to the company in this. Also, there is a possibility of Musk's grip on Tesla's monopoly getting strengthened. The proxy consultant also said that now Musk's many other projects are taking up more time. This includes the purchase of Twitter, which is now known as X.

The package will increase with market value

Musk's new salary package has been proposed by Tesla's board of directors. However, Musk is also being criticized for the fact that he is getting this package due to his close relationship with the board. It does not include any fixed salary or cash bonus.

Instead, Musk will be rewarded more by the amount Tesla's market value increases over a 10-year period starting in 2018. Tesla's current market value is around $571.6 billion and is projected to reach $650 billion during the period covered by Musk's package.

What is Tesla saying?

Despite the proxy advisor's recommendation, Tesla has appealed to shareholders to give their approval for the compensation package. Tesla's board chairman Robin Denholm has defended the salary package. He says that Musk deserves to be rewarded for the rate at which Tesla's revenue and share value have increased.

Musk brought Tesla from loss to profit

Musk has been the CEO of Tesla since 2008. He has played a key role in turning the company from loss to profit. According to an online campaign website Vote Tesla, the company has turned a profit of $15 billion from a loss of $2.2 billion in 2018. Also, vehicle production has increased seven times.

At the same time, Glass Lewis has advised to vote against Musk's salary package as well as the re-election of his brother and board member Kimbal Musk. However, it has recommended the re-election of former 21st Century Fox CEO James Murdoch.