(Reuters) -Tesla's board has proposed an unprecedented $1 trillion compensation plan for CEO Elon Musk, putting the spotlight on Musk's hold on the electric-vehicle maker as it looks to pivot into robotaxis and humanoid robots.
COMMENTS:
PETER ANDERSEN, FOUNDER, ANDERSEN CAPITAL MANAGEMENT, BOSTON
"Investors were on the sidelines waiting for something like that to get resolved."
"Long-term compensation for a founder like that is extremely important ... that usually polarizes most people because some
think that it is too much and is not rational while others think that it's formulaic and a founder for such a large company deserves that kind of compensation."
"Would this kind of compensation increase his focus on running a singular company like Tesla because that's usually what the compensation is designed to do? ... Mr. Musk has shown a troubling history of being easily distracted into other paths that don't necessarily directly benefit a company like Tesla."
ANN LIPTON, PROFESSOR AT UNIVERSITY OF COLORADO LAW SCHOOL, EXPERT IN CORPORATE GOVERNANCE AND CORPORATE LITIGATION
"Texas allowed Tesla to amend its bylaws to block shareholder lawsuits by anyone who holds less than 3% of the company. Therefore, there will be no shareholder lawsuit, and no scrutiny along those lines. "
"Notably, the Comptroller of the State of New York and the City of New York have included a shareholder proposal in the proxy materials to repeal that bylaw."
ART HOGAN, CHIEF MARKET STRATEGIST AT B RILEY WEALTH IN NEW YORK
"The shareholder base of Tesla has long been an Elon Musk fan group to the extent that anything that impaired Elon Musk from being driven to make Tesla better would be disappointing to shareholders."
"Elon Musk's pay package has been an issue for, you know, over a year now and you know, putting that in the rear view mirror is obviously going to be a positive."
(Reporting by Shashwat Chauhan, Johann M Cherian, compiled by Arpan Varghese in Bengaluru; Editing by Sriraj Kalluvila)
