"Denholm criticized both firms for consistently opposing Tesla's growth-oriented plans, noting that the company's market capitalization has increased twentyfold since shareholders approved Musk's 2018 performance package, which both advisors had opposed at the time. "Our shareholders have ignored their recommendations, and it's a good thing they did," she wrote. "Otherwise, you may have missed out on our market capitalization soaring 20x while the proxy advisors time and time again recommended "against" Tesla proposals designed to promote the sort of extraordinary growth we have enjoyed.""
"The letter comes ahead of Tesla's 2025 Annual Meeting, where shareholders will vote on several key proposals including Elon Musk's 2025 CEO Performance Award and director reelections. The letter argued that Glass Lewis and ISS use robotic policies that don't account for Tesla's innovation-driven structure. Tesla's leadership maintained that the 2025 CEO Performance Award will only reward Musk if he achieves extraordinary market capitalization and operational goals."
Tesla urged shareholders to reject recommendations from proxy advisory firms ISS and Glass Lewis, arguing that their one-size-fits-all policies fail to account for Tesla's innovation-driven operating model. The company emphasized that its market capitalization rose twentyfold since approval of Musk's 2018 performance package despite those advisers' past opposition. Tesla defended the 2025 CEO Performance Award as tied to extraordinary market capitalization and operational targets designed to align Musk's incentives with long-term shareholder interests. The company criticized proxy advisors for using robotic models that consistently opposed growth-oriented proposals and reiterated that shareholders should weigh company-specific context.
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