"Tesla investors are voting on multiple proposals. Chief among them is Musk's pay package, but shareholders will also consider other proposals, including whether Tesla should explore an investment in his AI startup, xAI. Investors will also decide whether to carve out Tesla share reserves for rewarding and attracting top talent (as well as allocating 208 million shares to "address the uncertainty" over Musk's 2018 pay package, which remains snarled in a legal battle after a judge tossed it out)."
"Weeks ahead of the vote, proxy advisory firms ISS and Glass Lewis have both urged shareholders to reject the proposal. On Tuesday, Norges Bank Investment Management, which manages Norway's $2 trillion sovereign wealth fund, also said it had voted against the pay package over concerns about the lack of mitigation of Musk's "key person risk" for Tesla. The fund is Tesla's sixth-largest institutional shareholder and the world's largest wealth fund."
"Musk called the proxy firms "corporate terrorists" during Tesla's recent earnings call, and board chair Robyn Denholm warned shareholders in an October letter that Musk could walk away from the company if they don't approve his compensation. Tesla's shares have recovered from a sharp downturn earlier in the year, but its sales face an uncertain future after the end of the EV tax credit in the US and increased competi"
Tesla shareholders will vote at the annual meeting on Elon Musk's proposed $1 trillion compensation package and several related proposals. Proposals include exploring an investment in Musk's AI startup xAI, creating share reserves to reward and attract top talent, and allocating 208 million shares to address uncertainty around Musk's 2018 pay package. The $1 trillion plan requires Musk to raise Tesla's market cap to $8.5 trillion by 2035, sell 12 million vehicles annually, and deploy one million robotaxis plus one million humanoid robots. Proxy advisory firms ISS and Glass Lewis urged rejection, and Norges Bank voted against the plan citing unmitigated key person risk. Musk criticized proxy firms, and board chair Robyn Denholm warned Musk could leave if the package is rejected. Tesla's shares have recovered, but sales face uncertainty after the US EV tax credit ended and competition increased.
Read at Business Insider
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