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A group of Tesla investors is urging shareholders to oppose a $46 billion compensation plan proposed for CEO Elon Musk, stating that it was not in the best interests of the electric vehicle manufacturer.
Tesla is currently facing challenges including a decline in global sales, reduced demand for electric vehicles, an outdated range of models, and a significant drop in its stock price of 30 per cent this year.
The group, led by New York City Comptroller Brad Lander, reached out to fellow Tesla shareholders to vote against Musk’s compensation and the re-election of two board members. They argue that the board’s close ties with Musk have compromised their ability to properly assess the compensation package.
Why Tesla shareholders don’t want a payout for Elon Musk
Concerns have been raised that approving Musk’s pay could lead to litigation over allegations of corporate waste. Musk is perceived as a “part-time CEO,” as he is increasingly involved with other business ventures, according to the group’s letter.
They stated, “Shareholders should not pretend that this award has any kind of incentivizing effect—it does not. What it does have is an excessiveness problem, which has been glaringly apparent from the start.”
In addition, the letter references a 2018 observation by the Institutional Shareholder Services (ISS) that the pay package was designed to ensure Musk’s commitment to Tesla over ten years. However, the group criticized this intention as “an abysmal failure,” noting Musk’s growing external business engagements.
The letter also warns that shareholder approval of the compensation could prompt a similar or larger award proposal next year.
The shareholders are also advocating for a vote against the re-election of board members Kimbal Musk, Elon’s brother, and James Murdoch, formerly of 21st Century Fox.
Last month, Tesla requested shareholders to reinstate Musk’s previously rejected pay package, valued at $56 billion, and to consider relocating the company’s headquarters to Texas. Judge Kathaleen McCormick in Delaware called the compensation an “unfathomable sum,” ruling that he “failed” to prove that it was fair. Musk pinned a post by Tesla on X, which he also owns, urging Tesla shareholders to grant him $50 billion in retroactive pay.

We have put forward two especially important proposals for our Annual Meeting of Stockholders—and we need your vote.
Protect your rights as stockholders & protect the value of your investment by voting FOR the ratification of the 2018 CEO Performance Award & FOR Reincorporating… pic.twitter.com/ONmB7oZfyM
— Tesla (@Tesla) May 20, 2024

These proposals will be decided upon at Tesla’s annual stockholders meeting scheduled for June 13.
In a regulatory filing last month, Chairperson Robyn Denholm claimed that Musk has achieved growth and met all the operational and stock value targets specified in the 2018 compensation package, which had been approved by shareholders. Since the initiation of that package, Tesla’s shares have increased by 571 per cent.
Tesla also relinquished its position as the top global electric vehicle provider in the last quarter of 2023.
Featured image: Canva / Steve Jurvetson / Debbie Rowe / The Royal Society
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The U.S. Securities and Exchange Commission (SEC) has requested that exchanges update their filings for spot Ethereum (ETH) exchange-traded funds (ETFs) by submitting new Form 19b-4 on an “accelerated basis.”
This move, according to Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart, suggests that the SEC may be leaning towards approving the Ethereum ETF applications by the upcoming Thursday deadline. If approved, this would mark the issuance of the second spot digital asset ETF in the United States.

Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024

Prior to the updated Form 19b-4 request, Balchunas and Seyffart had estimated the odds of Ethereum ETF approval at 25%. However, following the SEC’s request, they have significantly increased their prediction to 75%. Despite the optimism among some in the crypto community, Balchunas believes that the approval expectations are merely “wishcasting.”
The next steps
For the ETFs to launch, the SEC must approve both the 19b-4s for exchange rule changes and the S-1s for registration statements, according to Nate Geraci, president of The ETF Store. The potential approval of spot Ethereum ETFs could signal a significant shift in U.S. crypto policy.
Variant Fund Chief Legal Officer Jake Chervinsky stated that an approval would be a “true shock” to those closely involved in the process in Washington, D.C. He added that the approval could indicate a major change in U.S. crypto policy following the SAB 121 vote, which may be even more significant than the ETF itself.

If the spot ETH ETF is approved, it will be a true shock to everyone I know in DC who’s close to this process.
That doesn’t mean it won’t happen.
It means approval could signal a major shift in US crypto policy after the SAB 121 vote, perhaps more important than the ETF itself. https://t.co/ru0iD0GJIC
— Jake Chervinsky (@jchervinsky) May 20, 2024

Seyffart agreed with Chervinsky’s assessment, noting that during a recent Blockchain Summit in D.C., nearly everyone he spoke to believed the ETFs would be denied. If the ETFs are approved, it could portray the Biden administration as more crypto-friendly. The approval in the United States would also follow the launch of such a product in Hong Kong in early May.

This is the correct take. I was literally in DC last week for @PerianneDC’s Blockchain Summit and almost every single person i spoke to said that it was going to be denied. Only one person thought it would be approved out of like 30+.
— James Seyffart (@JSeyff) May 20, 2024

Ethereum’s price increased by over 21% to its current price of nearly $3,800 on the back of the news.
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