Tesla(US:TSLA) Benzingaยท2025-10-22 10:07Core Viewpoint - Tesla's Board Chair, Robyn Denholm, defends CEO Elon Musk's controversial compensation package against proxy advisory firms ISS and Glass Lewis, arguing that their evaluations are overly simplistic and do not account for Tesla's unique challenges [1][2]. Group 1: Defense of Compensation Package - Denholm criticizes ISS and Glass Lewis for their "one-size-fits-all" approach, stating that they are "fundamentally unable" to evaluate Tesla accurately [2]. - She emphasizes that Musk will receive no compensation unless shareholders achieve exceptional investment returns, and he could gain additional voting rights by meeting ambitious market capitalization and operational goals [3]. - Denholm asserts that Musk must lead Tesla to $400 billion in Adjusted EBITDA, which requires a growth of approximately 26 times the current figure, countering claims that the milestones are too easy [4]. Group 2: Investor Appeal - Denholm urges investors to disregard the advice of ISS and Glass Lewis and to support the Board's recommendations, framing the decision as a choice between innovation and traditional automotive practices [5]. - Experts have mixed opinions on the compensation package; while some, like Ross Gerber, criticize it as "insanity," others, including Cathie Wood, defend it and predict it will pass at the shareholder meeting [6][7]. Group 3: Company Performance Metrics - Tesla is noted for strong performance in Momentum, Quality, and Growth metrics, although it is rated poorly on Value [8].