#ElonMusk #TeslaShareholders #ElectricVehicles
Elon Musk Confident of Victory in $56 Billion Tesla Pay Vote
Elon Musk announced on Wednesday night that Tesla shareholders are poised to endorse his contentious $56 billion compensation package and the relocation of the electric vehicle manufacturer's incorporation from Delaware to Texas. The shareholder vote, which can continue until Tesla's annual meeting on Thursday, encompasses two resolutions: the approval of the $56 billion pay package and the proposed shift in state of incorporation.
Musk reported that both resolutions are currently gaining approval by wide margins, without providing specific figures. The initial pay package, which set ambitious financial performance and market value targets for Tesla, was approved in 2018 but was later invalidated by a Delaware judge in January. Since then, Tesla has experienced decelerating growth and intensified competition, particularly from Chinese players. Musk's acquisition of Twitter, now known as X, and his heightened focus on other projects, such as Neuralink and xAI, have raised concerns among critics.
Detractors argue that Musk's involvement in various ventures is a distraction and that the compensation, the largest in U.S. corporate history, is disproportionate. They point to Tesla's recent financial performance, which has not met their expectations. Prominent shareholders, including Institutional Shareholder Services, Glass Lewis, the California State Teachers' Retirement System, and Norway's sovereign wealth fund, have declared their intention to vote against the deal.
Supporters argue that Musk is indispensable to Tesla's future success and that the pay package has motivated him to excel. They believe that Musk will pursue other opportunities if not adequately compensated. Billionaire investor and long-term Tesla shareholder Ron Baron has announced his support for the pay package, stating, "At Baron Capital, our answer is clear, loud, and unequivocal: Tesla is better with Elon. Tesla is Elon."
Major investors, such as Vanguard and Blackrock, have yet to disclose their voting intentions.
Original Article: https://www.cnbc.com/2024/06/13/elon-musk-says-tesla-shareholders-likely-approved-his-56-billion-pay-deal.html
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