Investing.com -- Long-time Tesla Inc (NASDAQ:TSLA) shareholder Scottish fund manager Baillie Gifford is set to throw its weigh behind Elon Musk and vote in favor of backing Elon Musk’s $56 billion pay package, Bloomberg report Monday, citing unnamed sources.
The shareholder vote on Musk's pay package -- approved in 2018, but was later struck down and voided "unfathomable" by a Delaware judge, forcing Tesla to seek reapproval -- is slated for Jun. 13.
Musk has won the backing of Baillie Gifford, which has held the stock for over a decade and once was Tesla’s second-largest shareholder before reducing its stake to 0.5%, as the Tesla CEO achieved the lofty targets set in 2018, a source told Bloomberg.
Baillie Gifford declined Bloomberg's request to comment.
But not everyone is on team Musk when it comes to giving his $56B payday the green light.
Institutional Shareholder Services have recommended that shareholders vote against the comp package, while Norway’s sovereign wealth fund Norges Bank Investment Management said last week it would vote against it.
The ongoing pay-package saga has been an one of many overhangs on Tesla's stock, Wedbush said in a recent note, but approval would be an crucial step to move this "distraction in the rearview mirror," at a time when many are questioning demand for Tesla amid stiff competition in China and slowing EV sales.