Tesla investors currently have the chance to vote on a number of proposals for the company’s upcoming shareholder’s meeting. CEO Elon Musk’s 2018 pay package is hanging in the balance after it was struck down by a Delaware judge. In recent weeks, a number of *Teslarati* readers have shared how they voted or plan to vote on the proposal, with about a month left until the meeting.
Crucially, the board has recommended “yes” votes on both proposals three and four. Proposal three concerns Tesla’s potential move to re-incorporate in Texas instead of Delaware, and proposal four pertains to the pay package vote for Musk. The annual shareholder’s meeting will be held on June 13, and shareholders can continue to vote on the proposals between now and then.
Of the respondents, 75 percent said they had voted or would vote “yes” on the matter, while the remaining 25 percent said they voted or would vote “no.” It is important to note that this is an extremely small sample size compared to the number of shareholders and Tesla shares. Furthermore, shareholders still have a little over a month to cast their votes, and many could still be undecided on the proposal. Chairperson Robyn Denholm expressed dissent on the subject last month, highlighting that Elon has not been paid for any of his work for Tesla for the past six years.
This has been viewed as fundamentally unfair by many stockholders. Denholm suggested subjecting the original 2018 package to a new shareholder vote, disputing the findings of the Delaware Court. With these developments in mind, there are various perspectives and considerations at play.
Shareholders’ decisions in the coming weeks will ultimately shape the outcome of the proposals and Musk’s pay package.