Editor’s Note: The article has been updated to remove an incorrect statement about T. Rowe Price’s position on a future proposal.
The site features a video message from board Chair Robyn Denholm emphasizing that supporting Musk’s pay is critical for the company’s growth.
Court Rejection, Board Rebuttal: This vote follows a Delaware judge’s rejection of the compensation agreement in March. The judge argued that Tesla directors didn’t prioritize shareholder interests.
Denholm, in the promotional video, counters this argument, stating, “We don’t believe one judge’s opinion should void the will of millions of votes cast by all of the owners.”
KoGuan, who reportedly owns 0.8% of Tesla, stated, “The court had spoken and many facts came out. He has to respect and obey the court’s decision.” He also plans to vote against relocating Tesla’s headquarters from Delaware to Texas, according to the report.
See Also: Everything You Need to Know About Tesla Stock
Shifting Shareholder Landscape: Large asset managers now hold roughly 46% of Tesla’s shares, down from 70% in 2018 during the first vote on the pay package, as per Bloomberg. Back then, the board won with 73% approval. This time, the outcome may be less certain.
Investor Silence, Proxy Awaitment: Tesla’s two largest investors after Musk, Vanguard and BlackRock, reportedly voted for and against the 2018 proposal, respectively. Their stance on the re-vote, however, remains unclear.
Market observers are reported watching proxy advisory firms like ISS and Glass Lewis, whose recommendations can influence voting, especially those of passive funds.
Why It Matters: While non-binding, the vote carries significant weight for Musk’s leadership. Board approval strengthens their case against the court decision, while a loss could be a major setback.
Musk has even threatened to pursue ventures outside Tesla if he doesn’t secure a 25% equity stake.
Tesla investor and CEO of Gerber Kawasaki Wealth and Investment Management, Ross Gerber, has said the vote puts the integrity of Tesla’s board on the line.
Image via photos on Shutterstock
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