Two matters were voted on Tesla shareholders ‘meeting held on June 13

Recently, we learned from relevant channels that Tesla will hold the annual shareholders’ meeting on June 13.

It is reported that shareholders at this meeting need to vote on two major issues: CEO Musk’s $56 billion compensation package and whether the company’s domicile will be moved from Delaware to Texas, where the company is headquartered.

Two matters were voted on Tesla shareholders 'meeting held on June 13, Tesla even set up a website to ensure that the proposal was passed, hoping that his huge retail investors would vote in favor of it.

In response to Mr Musk’s $56 billion compensation plan, Tesla investor CEO–Ross Gerber of Gerber Kawasaki Wealth & Investment in California voted for Mr Musk’s pay package, saying: “although Tesla’s performance over the past 12-18 months has been much lower than we expected, Musk has achieved amazing results over the past 10 years.

” Glass Lewis, a third-party shareholder adviser, has publicly opposed it, arguing that the compensation package would over-dilute existing shareholders and be “too large” and that the proposal to move to Texas would bring “uncertain benefits and additional risks” to shareholders.

The position of ISS, a third-party consultancy, on the bill has not been announced.

The two companies are the largest independent shareholder advisers in the United States, and their recommendations have an important impact on investors’ voting decisions.

Two matters were voted on Tesla shareholders 'meeting held on June 13, analysts said that Musk’s leadership and innovation ability are the main reasons for Tesla’s share price premium, and if the compensation case is rejected, it may increase the uncertainty about the company’s future direction and leadership.

In January, Mr Musk expressed dissatisfaction with his current stake, saying he would feel uneasy without about 25 per cent of voting control, otherwise he would rather develop products outside Tesla.

When developing the stock option plan in 2018, Tesla’s board of directors said that Musk would only be paid if the company achieved excellent results and the share price soared.

But Tesla shareholders questioned the plan, and in the end, Mr Musk was entitled to about 304 million Tesla shares at a preset price of $23.

34 a share if the company met certain revenue, profit and share price targets.

The plan is divided into 12 separate parts, each linked to its own goals, worth about $51.

1 billion based on Tesla’s closing share price on Tuesday.

Mr Musk has achieved all 12 goals, but under the terms of his plan, he must hold the shares for at least five years before he can sell.

In addition, shareholders need to vote on whether the company will move its registration from Delaware to Texas.

Analysts believe that the board is very concerned about the results of the vote, but it is difficult to predict which proposals will be passed.

At the last shareholder meeting, Musk confirmed the launch date of Cybertruck, JB Straubel, the company’s former chief technology officer, joined its board, and Musk refuted rumors that he would step down as CEO.

The result of this year’s Tesla shareholders’ meeting is not only related to the company’s development strategy and compensation system, but also may affect the stock price performance.

(source: Wall Street.

Compiler / Auto House Yao Yu), return to the first electric net home page >.

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