At Extreme Investor Network, we understand the importance of making informed decisions when it comes to your investments. Today’s hot topic revolves around Tesla (TSLA) shareholders and their decision on whether to reinstate Elon Musk’s record pay package after a Delaware judge rejected the previous one.
As an early investor in Tesla, Ibrahim AlHusseini, founder of VC firm FullCycle, believes in honoring the 2018 package that was nullified. Despite his unenthusiastic stance, AlHusseini emphasizes the importance of upholding the agreement made with Musk.
With retail investors holding 40% of Tesla stock, Musk claims their support for his proposed pay package. This assertion was backed by a tweet from Musk, stating that the majority of retail shareholders are in favor of the reinstatement.
However, the decision lies in the hands of major institutional shareholders like BlackRock, Vanguard, State Street, Geode Capital, and Capital Research, who hold 17% of the vote. While some like Baron Capital, Altimeter, and Ark Invest are in favor, others such as Norges Bank Investment Management, Glass Lewis, Institutional Shareholder Services, California Public Employees’ Retirement System, and California State Teachers’ Retirement System argue that the proposed amount is excessive.
Renowned investor Ross Gerber, co-founder of investment firm Gerber Kawasaki, supported the pay package in 2018 but is now against it. He believes that Musk should be incentivized based on the actual performance of the company, not just the stock price.
The city’s comptroller, Brad Lander, is also against the plan, citing concerns about Musk’s distracted focus on other ventures. Lander urges shareholders to reject the pay package, highlighting the need for corporate governance at Tesla.
As the shareholder meeting approaches, the outcome will shed light on investors’ perception of Tesla’s future and Musk’s influence. With Tesla shares declining this year, the decision regarding Musk’s pay package will have significant implications on the company’s trajectory.
Stay tuned for more updates on this developing story and other financial news that impacts your investment decisions at Extreme Investor Network. Trust us to provide you with valuable insights and analysis to help you navigate the ever-changing world of finance.