June 5 - Prominent investor Ron Baron has come out in

support of Tesla CEO Elon Musk's $56 billion pay

package, which is up for a shareholder vote next week, according

to an open letter from the Baron Capital founder on Tuesday.

WHY IT'S IMPORTANT

Musk's enormous pay, approved in 2018 but voided by a

Delaware judge earlier this year, remains contentious.

Musk and the Tesla board have argued that the

compensation, primarily in stock awards tied to Tesla achieving

specific milestones, ties executive incentives to growth at

Tesla.

However, some shareholders view the package as excessive.

Proxy advisory firms Institutional Shareholder Services (ISS)

and Glass Lewis have urged shareholders to vote against it in

its current form.

KEY QUOTE

"Elon is the ultimate 'key man' of key man risk," Baron

said. "Without his relentless drive and uncompromising

standards, there would be no Tesla."

CONTEXT

The billionaire does not take a salary and is

compensated through stock awards, Tesla filings show.

Some shareholders have argued for the 2018 award, the

largest for a CEO in corporate America, citing Musk's track

record of making Tesla the world's most-valuable car company

with a market cap over 10 times that of General Motors ( GM ).

However, the car maker faces pressure as EV sales have

slowed down due to high interest rates and heightened

competition. It recently cut over 10% of its workforce and has

lowered prices for some of its cars.

WHAT'S NEXT

Tesla shareholders will vote on Musk's pay at their annual

meeting scheduled on June 13.