Yesterday on X, Elon Musk posted that the two key resolutions for the upcoming Shareholder Meeting were both passing by wide margins – and would subsequently go on to pass at today’s Shareholder Meeting.
Musk Compensation Package and Tesla’s Move to Texas
The two key resolutions, one on Elon Musk’s performance-based compensation package, and the other on Tesla’s re-incorporation to Texas, both passed in the preliminary stages. Each required a minimum number of ‘Yes’ votes to pass at the Shareholder Meeting.
The performance-based compensation package only required a simple majority – a certain number of Yes votes, with abstentions not counting as Nos. On the other hand, the move to Texas required a full majority, with abstentions counting as Nos.
Elon Musk declared his victory on X in these two key votes, and Tesla’s share prices moved favorably in post-market, and then again in pre-market trading. This is a positive indicator for Tesla and Elon Musk. On X, Elon recently agreed that given he has received a controlling stake in Tesla, he would work towards making Tesla the most valuable company on Earth.
Yes
— Elon Musk (@elonmusk) June 13, 2024
Other Resolution Results
The first five proposals are Tesla corporate proposals, while the remainder are shareholder proposals, and are covered in the table below. For more details, you can read Tesla’s Proxy Package. The proposals are ordered below in the order of presentation.
All the proposals passed in line with the board’s recommendation, except for two, which were to reduce director terms to one year and for simple majority stockholder voting.
Resolution | Board Recommendation | Vote Result |
|---|---|---|
Elect 2 Directors for a 3 Year term (James Murdock, Kimball Musk) | For | For |
Non-Binding Advisory-basis Executive Compensation | For | For |
Move Tesla to Texas | For | For |
Elon Musk’s Compensation Package | For | For |
Appoint PricewaterhouseCoopers as Tesla’s accounting firm. | For | For |
Reduce Director Terms to 1 Year | Against | For |
Simple Majority Stockholder Voting | Against | For |
Annual Report on Anti-Harassment and Discrimination | Against | Against |
Freedom of Association and Collective Bargaining Policy | Against | Against |
Report on EM Radiation and Wireless Technologies, and effects on humans. | Against | Against |
Adopting targets and reports for sustainability metrics for executive compensation | Against | Against |
Moratorium on sourcing minerals from deep-sea mining. | Against | Against |
Shareholder Meeting Event
You can view Tesla’s shareholder meeting below:
Starts at 3:30pm CT https://t.co/M4j55lEht1
— Tesla (@Tesla) June 13, 2024
