Source: Golden Ten Data
This year's Tesla shareholders' meeting will be the focus. Shareholders will vote on Elon Musk's $56 billion compensation plan, place of re-registration, and board nominations to vote at the annual meeting.
Shareholders' meetings are usually unremarkable and unsurprising events, but$Tesla (TSLA.US)$The conference has always been extraordinary, and this year's conference attracted even more attention.
Tesla shareholders will:
① Asked to vote on CEO Elon Musk's $56 billion compensation plan;
② Decide whether a Texas-based company should move its place of registration from Delaware to Texas;
③ Other voting proposals include re-electing two board members.
The electric car maker took a relatively unusual step by creating a website to gain support for its proposal in the hope that its large base of retail investors (usually avid fans) would respond to its call. The meeting is scheduled to be held on June 13, and voting is ongoing.
According to FactSet, Tesla has the 13th lowest share of institutional investors in the S&P 500 index.
Danilo Kawasaki, co-founder and chief operating officer of California's Gerber Kawasaki Wealth and Investment Management Company, has made the decision.
“I personally voted for Elon's pay plan because it has been approved and it's unfair to overturn it now,” he said. “Although the performance of the past 12 to 18 months fell far short of our expectations, Elon has delivered amazing results over the past 10 years.”
A Delaware judge overturned Musk's compensation package in a far-reaching ruling in January, saying the $56 billion determination process was “seriously flawed.”
Gerber Kawasaki reduced his Tesla holdings to around $52 million and managed assets of around $2.8 billion. Gerber Kawasaki does not vote for client agents. Another of the company's co-founders, Ross Gerber, ended his campaign for a seat on Tesla's board last year.
Acting consultant Glass Lewis recently opposed the CEO compensation plan, the re-election of Musk's younger brother Kimbal Musk to the board of directors, and the relocation of registration from Delaware to Texas.
Glass Lewis and Institutional Shareholder Services Inc., which have yet to disclose their proposals, are two major independent service organizations designed to advise investors on key shareholder votes.
“Tesla's annual conference is always in the spotlight, but this year's risk is higher because Musk's compensation plan and a bill to move the company's registration from Delaware to Texas are on the ballot,” CFRA analyst Garrett Nelson said.
Tesla's board is concerned about the voting results, and it's hard to predict which proposals will be passed or rejected, Nelson said.
“We don't want to predict... we can only say that the impact of proxy voting is significant. We think the voting approval rate for Musk's compensation plan will be lower than the 73% approval rate in 2018,” the analyst said.
Nelson said one of the main reasons Tesla shares are trading at a “huge” premium is Musk's ability to lead and innovate. “If the compensation plan is vetoed, it could increase uncertainty about the company's future direction and leadership.”
At last year's meeting, Musk confirmed Cybertruck's sale date and elected former long-term deputy J.B. Straubel to the board of directors. Musk also clarified rumors that he will step down as Tesla's top executive.
Since this year, Tesla's stock price has not performed well, falling nearly 30%, while the S&P 500 index has risen by about 11% over the same period.
Editor/jayden