To hell with the witch hunt against Elon Musk. Telse shareholders know what’s up. The Democrat and Deep State Witch Hunt against Elon Musk must stop now. Sound familiar?
Tesla shareholders convened on Thursday to decide the future of the electric vehicle giant’s compensation strategy for CEO Elon Musk. The focal point of the gathering was the vote on whether to restore Musk’s significant compensation package, previously invalidated by a Delaware judge. The attention surrounding this decision reflects its importance to both Tesla’s leadership structure and its broader strategic ambitions.
WATCH: Tesla shareholders are voting to approve a $56 billion pay package for Elon Musk and to move the electric vehicle maker’s legal home to Texas, the CEO said on social media https://t.co/QrsYzBNkDp pic.twitter.com/z3bxLUoRBZ
— Reuters Business (@ReutersBiz) June 13, 2024
In a Securities and Exchange Commission (SEC) filing on Thursday, Tesla indicated that preliminary voting results were strongly in favor of reinstating Musk’s pay package, reportedly valued at around $44.9 billion. This disclosure followed Musk’s own social media posts, which included charts suggesting shareholder support for not only his compensation but also a strategic shift of Tesla’s legal home from Delaware to Texas.
This move came after a Delaware judge earlier this year ruled that Tesla had misled shareholders when it initially approved the compensation package in 2018, a package that had escalated to nearly $56 billion before a downturn in stock prices. Legal analysts have pointed out that revealing voting results while voting is ongoing could be problematic, potentially influencing shareholder decisions and drawing regulatory scrutiny.
Voting was open online and at Tesla’s annual shareholder meeting in Austin, Texas, where shareholders had the opportunity to alter their previously cast votes. The dynamic of announcing preliminary results was seen as a strategy to solidify support and dissuade opposition.
The potential restoration of Musk’s pay package is critical for Tesla’s direction. If reinstated, it could ensure Musk’s continued leadership at the helm of the company, which he has expanded to be a leader in electric vehicles, with a growing focus on AI and robotics, particularly autonomous vehicles. However, if shareholders reject the package, Musk has hinted he might shift his focus to AI initiatives at his other enterprises or possibly step back from Tesla.
$TSLA bull Cathie Wood of Ark Invest on the @elonmusk pay package ahead of today’s shareholder meeting and her new price target for the stock. pic.twitter.com/hME0EPEfOU
— Squawk Box (@SquawkCNBC) June 13, 2024
The significance of the pay package and its approval is underscored by the broader implications for Tesla’s future operations and governance. Early indications also suggest shareholder support for relocating Tesla’s legal base to Texas, likely to minimize the influence of Delaware courts following recent judicial setbacks.
The controversy extends beyond the courtroom. Tesla’s aggressive lobbying efforts to secure the pay package have included social media campaigns, TV appearances, and detailed proxy statements to the SEC. Tesla Chairwoman Robyn Denholm has defended the compensation, emphasizing its approval by a substantial majority of shareholders in the past and its role in Tesla’s growth.
Amidst this backdrop, Tesla is navigating legal challenges and significant shareholder scrutiny. Various institutional investors and advisory firms have expressed opposition to the package, citing its magnitude and potential dilution of shareholder value. Yet, Tesla’s primary institutional investors have largely remained non-committal publicly.
JUST IN: Tesla shareholders have approved the pay package for @elonmusk . As the CEO of the company, he has overseen a growth of over 3,000%, making many shareholders wealthy.
The approval is a slap in the face to the activist judge in Delaware who voided it. She said it… pic.twitter.com/4dEFZEJiun
— 🇺🇸Travis🇺🇸 (@Travis_4_Trump) June 13, 2024
The shareholder decision on Musk’s compensation and the possible legal home relocation to Texas could profoundly influence Tesla’s corporate governance and operational strategy. If Tesla manages to reapprove the pay package and successfully relocate its legal domicile before finalizing these votes, it could significantly alter the landscape of ongoing legal disputes and set a precedent for corporate governance that aligns closely with Musk’s vision for Tesla’s future. I would not bet against Elon Musk. The man is on a mission to not only create the greatest car company in the world, but to settle other planets for humanity. There is more at stake in these attacks on the man, than most realize. It’s all due to his buying of Twitter and firing the FBI agents who controlled content at the company. So now the Deep State has it in for him almost as much as they are after President Trump.
Major Points:
- Tesla shareholders convened to decide on reinstating CEO Elon Musk’s large compensation package, previously nullified by a Delaware judge.
- Preliminary voting indicated strong shareholder support for Musk’s $44.9 billion pay and relocating Tesla’s legal home from Delaware to Texas.
- The controversy centers on a 2018 ruling that Tesla misled shareholders about the pay package, which had increased in value before Tesla’s stock declined.
- If approved, the compensation could secure Musk’s leadership as Tesla shifts focus to AI and robotics, including autonomous vehicles.
- Tesla’s efforts to sway shareholder votes include social media campaigns and public statements, despite legal and institutional investor concerns.
Al Santana – Reprinted with permission of Whatfinger News
