The Tesla shareholder group urges a probe, a “appropriate correction” from NASDAQ over the Elon Musk package of $ 29 billion

The soc Group, well -known as CTW Investment Group, works with pension entertainment of sponsored trade union coalitions representing more than 2 million members; Many of these funds are Tesla investors.

In a letter of 19 August 2025, he addressed Erik Wittman, representatives of the General Advisor and the head of recovery in Nasdaq, soc ExpressD “serious concern” regarding the new Muska compensation package. Specifically, SOC said that Tesla’s Board was circumventing the rules of NASDAQ when the MUSK “2025 CEO prize”, published in the beginning of this month. The group claims that this price of equity should require sharing voting, as determined by Nasdaq’s rules, given that it is very fine.

Tesla Council approved a new Musk capital package on the 2019 capital plan, such as compensation for its previously awarded – and shaken – and revived – an option package of $ 56 billion since 2018, known as “Prize for the performance of the CEO 2018. to the court.

LuckShawn Tully said that the new package would only apply if Musk and Tesla lose to appeal in Delaware. He also noted that, unlike the $ 56 billion price, it includes a newer price of $ 29 billion that protects shareholders: shares lead to the second anniversary of the grant or early August 2027 only if Musk serves as the CEO or Product headmaster. Musk cannot sell any of these verified shares up to five years later or August 3, 2030.

LuckAmanda Gerut postponed that the package lacks hard performance for Musk. Brian Dunn, Director of the Institute for Compensation Studies at Cornell University, said Luck The fact that they sometimes pass to them as “grants for fog mirr.” In other words: “If you are around and you have enough breath in you to fool the mirror, you will get them.”

Objections lobbyed by SOC Investment Group in their letter have nothing to do with the Eith feature of grants. The Group claims that the Tesla Council has avoided the approval of shareholders for the package in NASDAQ policy.

Tejal patel, Executive Director of SOC Investment Group, said Luck In an interview that “the real problem is the fact that the original plan… was prepared clear in the publication that the company did not intend to include in this plan Elon Musk.” Recognition that such problems are usually raised with the Securities and Exchange Commission, she added: “It’s the first time I first marked Nasdaq, (and) because it was a very specific list.” Its understanding of the Nasdaq standard is that “that’s exactly what he was designed to avoid.”

Shareholders probably “did not believe” that they voted on the approval of the new Musk package

The SOC investment group emphasizes that when Tesla’s shareholders approved the plan of the 2019 equity motivation, the publication of the company excluded Musk from capacity and postponed that its compensation would be exclusively associated with the extraordinary 2018 price. ” Muska, “notes the letter soc,” just because of the “truly extraordinary” nature of the CEO 2018. ”

The SOC also notes that the 2019 Proxy Station Tesla has repeated several times that the 2019 plan was not intended to cover the Musk Award. In addition, the letter states that the main advisory firms of Proxy suggest that the price for the performance of the CEO 2018 was “intended as the only means of compensation for MR. Muska, relying on the publication of the company”.

Therefore, SOC writes, the temporary prize of the CEO 2025 “will expand the class of participants according to plan 2019 in a manner that would be sufficiently material to require a separate vote of shareholders”.

The letter also warns that Tesla’s Board indicated that other interim prices could follow, and the potential circumvention of votes for shareholders, while the case of Delaware, the so -called. Tornetta Little disputes, waiting. The SOC urges Nasdaq to “restore” the legitimate balance between the interests of shareholders and management, “he prevented dilution and ensured the transparency of the compensation of executive compensation.

SOC has “real concerns about the independence of the director,” said Patel Luck. “This is released about the outcome of having a board that is not independent.” Sheid Her Group is Concerned with Issues Over and Lack of Director Independence and the Juggling of Responsibility by Elon Musk and Matters HAVE ” Extensive involvenment with the department of Government Efficience, or DOGE.

In a vocal, active shareholder

The SOC Investment Group has a long and active history of Tesla’s commitment and focuses on such executive compensation, administration, independence of the board and labor rights. The group has repeatedly opposed large salary packages for Musk – including leading campaigns that encourage shareholders to vote against the possibilities of $ 56 billion and called for a vote against related awards, especially when it believed that the proper standards of the shareholder administration were not set.

The group also urged Tesla shareholders to vote against the re -election of some directors, such as Kimbal Musk and James Murdoch, referring to the lack of independence of the Board of Directors on Elon Musk and harmonizing with the interests of shareholders. Like his current letter to NASDAQ, he required investigations of regulatory bodies in the field of Tesla administration and claims that the predecessor of the Board of Directors of Musk in the interests of public shareholders. For example, the Group asked the SEC to prob in 2022 by Tesla’s plan to reduce its advice.

The Group also teamed up with other investors in the resolutions of co -workers who demand that Tesla adopt comprehensive work rights policies, including non -acting workers and compliance with global work standards. SOC participates in webinars and emphasizes the risks emphasizing the risks related to Tesla’s approaches to trade unions and work from several countries.

Tesla has taken a public breath and imitated LuckRequest for comment.

For this story, Luck It uses generative AI to help with the initial concept. The editor verified the accuracy of the information before publishing.