Title: Baillie Gifford to Support Elon Musk's $56 Billion Pay Package at Tesla Shareholders' Meeting

Scottish asset manager Baillie Gifford, one of Tesla Inc.'s long-standing shareholders, will reportedly vote in favor of Elon Musk's controversial $56 billion pay package at the upcoming annual general meeting, according to an anonymous source familiar with the matter.

Baillie Gifford is said to support the pay award across its various funds, based on the ambitious targets and alignment with shareholder returns that were set in 2018 when the package was first introduced. The asset manager's decision to support the pay package comes even after a Delaware Chancery Court judge struck down the plan earlier this year, ruling that investors were not fully informed of crucial details.

While some large shareholders have already expressed their opposition to the substantial pay award, proxy advisers Institutional Shareholder Services and Glass Lewis & Co. have recommended that investors reject the proposal. Additionally, Norway's $1.7 trillion sovereign wealth fund Norges Bank Investment Management announced last week that it would also oppose the package, citing concerns regarding its size, performance triggers, dilution, and the mitigation of key person risk.

Baillie Gifford, which was once Tesla's second-largest shareholder, has been holding the company's stock for over a decade. However, the asset manager began reducing its stake in Tesla around 2020 and currently holds only about 0.5% of the company across its various funds.

Earlier this year, the Scottish Mortgage Investment Trust, Baillie Gifford's largest fund, publicly stated its support for Elon Musk's pay package. However, it remained unclear at that time how the asset manager as a whole would vote on the matter.

Tesla's shareholders have the opportunity to revisit the pay package during this week's annual general meeting, where they will determine whether to approve or reject it. The fate of Elon Musk's hefty compensation will be decided as shareholders weigh the potential benefits and concerns associated with the ambitious targets and overall impact on the company.

Baillie Gifford's decision to support the pay package adds an influential voice to the discussions, but it remains to be seen how the final vote will unfold and what impact it might have on the outcome.