Tesla Inc (NASDAQ:TSLA) CEO Elon Musk is urging shareholders to cast their votes on their shares by offering them an opportunity to win a personal tour of the company’s Texas facility. This incentive comes as the board requests shareholders to approve the reinstatement of Musk’s $56 billion compensation package.
What Happened: In a post on X on Saturday, Musk emphasized the importance of shareholder participation and asked for feedback on any voting issues encountered.
Musk’s tweet read, “Please take a moment to vote your Tesla shares before the annual meeting on Thursday. Lmk in comments if you encounter any issues.”
This call to action was in response to a tweet from Tesla, which highlighted a tour opportunity for shareholders who vote their shares.
In another tweet, Musk responded to financial blog Zero Hedge regarding Norway’s sovereign wealth fund’s potential sale of its Tesla shares. Musk stated, “Yeah, this is not cool. If they actually surveyed their constituents, they would discover overwhelming support in favor.”
On Saturday, Norges Bank Investment Management, which manages Norway's sovereign wealth fund, announced that it would vote against Elon Musk's substantial CEO compensation package at Tesla’s annual meeting.
Also Read: Tesla’s Board Is Desperately Trying To Focus Elon Musk’s Attention On The Company
Musk also noted that about 90% of retail shareholders who have voted “have voted in favor of both resolutions” in regards to his proposed compensation. He mentioned that many shareholders face challenges voting due to complications from institutions holding their shares.
In a separate conversation with Brett Winton from ARK Invest, Musk criticized the influence of proxy advisory firms ISS and Glass Lewis, stating they have “zero economic alignment with actual shareholders.”
Why It Matters: The tweets come at a crucial time as Tesla’s annual meeting approaches. Recently, Glass Lewis & Co. advised shareholders to vote against Musk’s proposed $56 billion compensation package, citing its “excessive size” and potential dilutive impact.
Tesla’s board has been striving to secure Musk’s full attention amid his involvement in multiple ventures. The board is trying to reinstate the record compensation package from 2018, which was overturned by a Delaware judge.
Musk’s call for shareholder votes highlights the significance of retail investors’ participation in corporate decisions. The outcome of the annual meeting could impact Tesla’s future direction and Musk’s role within the company.
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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