According to a report from Reuters on Friday, Institutional Shareholder Services (ISS), a top proxy advisory firm, has recommended that Tesla (NASDAQ:TSLA) shareholders vote against ratifying CEO Elon Musk's $56 billion pay package, calling it excessive.
Reuters said in a report Friday that this follows a similar recommendation by another proxy advisory firm, Glass Lewis, last week.
The publication added that ISS also advised shareholders to vote against Tesla director James Murdoch. However, they supported votes for director Kimbal Musk, Elon Musk's brother, and endorsed Tesla's proposal to change its state of incorporation from Delaware to Texas.
The upcoming vote is seen as a reflection on Musk's leadership, with investor concerns about his focus due to other ventures and his controversial public statements potentially affecting Tesla's reputation and sales.
The compensation plan, the largest for a corporate CEO in the U.S., ties rewards to Tesla's market value and operational achievements. In January, a Delaware judge voided the plan, prompting Tesla to propose moving its incorporation to Texas. Reuters noted that Tesla has scheduled a re-ratification vote for the pay package at its annual meeting on June 13.