'Please Take A Moment To Vote Your Tesla Shares:' Elon Musk Makes Impassioned Plea To Shareholders Amid Backlash Over Renegotiating 2018 Pay Plan

Zinger Key Points
  • Tesla's dedicated page related to the annual meeting calls upon shareholders to vote and explains various ways of voting.
  • A contentious issue that would come up for discussion is Musk's 2018 pay plan, with some legal experts saying it needs unanimous approval.

Tesla, Inc.‘s TSLA annual shareholder meeting scheduled for August is vital for the electric vehicle maker as it has played a gambit by bringing the now-nullified Elon Musk’s pay package back to the table. The desperation of getting a deal done is evident from the frantic calls by the board and more recently by the man himself.

On Saturday, the billionaire made an impassioned plea to shareholders to vote at the annual event, although he did not explicitly request to approve his pay package.

What Happened: “Please take a moment to vote your Tesla shares and let us know if you encounter any issues with voting,” said Musk in a post. The billionaire commented as Tesla influencer and investor Sawyer Merritt shared new instructions from the company regarding voting at the shareholder meeting.

In a dedicated webpage, Tesla emphasized the role of Musk in creating value for shareholders. “Thanks to Elon Musk's vision and leadership, Tesla has created tremendous value for you, the owners of the Company, all while advancing its mission to accelerate the transition to sustainable energy,” the company said.

“Stockholders, we need your vote.” The company gave instructions for voting by phone, online, by QR code, and by mail.

Among the company-sponsored proposals to be voted at the shareholder meeting are approval of the 2018 CEO performance award, which a Delaware Chancery Court nullified, and shifting Tesla’s state of incorporation to Texas.

See Also: Everything You Need To Know About Tesla Stock

Why It’s Important: There has been a raging debate over Tesla’s move to re-up the 2018 pay plan, with some, including legal experts, opining that potential approval would mean paying somebody for past work and doesn’t really benefit the company.

While sell-side analysts mostly believe the proposal will receive shareholder greenlight without any trouble, Ann Lipton, Associate Professor of Business Law and Entrepreneurship at Tulane University Law School, said it might have to be approved unanimously and not by a simple majority, as has been the typical norm.

In 2018, the proposal received a nod from shareholders representing 73% of the outstanding shares.

Tesla Chair Robyn Denholm recently released a video, requesting shareholders to vet the $47 billion plan, a reduction from the originally approved $56 billion amid a pullback in the shares.

On the other hand, Leo KoGuan, who reportedly has a 0.8% interest in Tesla, has sharply criticized Musk for wanting a controlling stake in the EV maker. To gain a controlling stake, the billionaire needs to pick up 10% more shares.

Tesla ended Monday’s session up 1.97% at $184.76, according to Benzinga Pro data, according to Benzinga Pro data.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: ‘It’s An Obvious Move:’ Elon Musk Nudges Warren Buffett Again To Take Position In Tesla — Here’s Why That May Not Happen Soon

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EquitiesNewsManagementTop Storieselectric vehiclesElon MuskEVsmobilityStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!