Nordic Brokerages Enable Voting At Tesla's AGM For The First Time

In an important move, some Nordic retail brokerages are now enabling their clients to vote at Tesla Inc. TSLA’s annual general meeting (AGM) this week.

The decision marks a departure from their usual practice, spurred by heightened investor interest and comments from CEO Elon Musk, according to Reuters.

The upcoming AGM on June 13 is poised to serve as a crucial vote on Musk’s leadership, especially after a recent court ruling deemed his $56 billion compensation package excessive.

With major shareholders divided, Tesla is rallying support from its retail investors who, excluding Musk and his brother, represent 48% of the ownership.

A bunch of Tesla executives have also publicly expressed their support for CEO Elon Musk’s $56 billion pay package.

Also Read: Tesla Argues New Pay Plan For Musk Would Cost More: Report

Swedish brokerages Avanza and Nordnet have responded to customer demands by allowing their nearly 150,000 Tesla shareholder clients to vote at the AGM, a practice not typically extended to non-European meetings.

The move reflects a broader trend of companies facilitating greater shareholder engagement in corporate governance.

Musk himself has been vocal about the importance of shareholder voices, asserting on social media platform X that he would challenge banks and brokers preventing shareholder votes.

However, proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) have advised Tesla shareholders to vote against the pay package.

Meanwhile, Sweden’s Swedbank continues to offer services for registering votes or facilitating digital attendance at AGMs of non-European companies for a fee, highlighting the increasing facilitation of international investor participation in corporate decisions.

Tesla stock has lost more than 27% in the last 12 months. Investors can gain exposure to the stock via ETFs, including Consumer Discretionary Select Sector SPDR Fund XLY and Fidelity MSCI Consumer Discretionary Index ETF FDIS.

Price Action: TSLA shares are trading lower by 2.46% at $169.52 at the last check on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock