Tesla's Pay Package Battle: Will Musk's Fans Save the Day?
June 10, 2024, 9:45 pm
Tesla is facing a crucial moment as major shareholders are split on whether to approve Elon Musk's $56 billion pay package. The electric carmaker is now turning to its retail investors, who make up a significant portion of its ownership base, for support.
Small investors tend to side with management, but many of them don't bother to vote, which could be a problem for Tesla. With Musk holding around 13% of the company's stake, top outside investors like Vanguard and BlackRock are remaining tight-lipped about their voting intentions.
Both major proxy advisers, Institutional Shareholder Services and Glass Lewis, have advised against ratifying the pay package, citing it as excessive. This could spell trouble for Tesla, as historically, resolutions with both proxy advisers recommending votes against them have had a lower success rate.
Online, Musk still has a strong following, with influential users like Omar Qazi and Alexandra Merz rallying support for the pay package. Despite Tesla's stock price facing challenges and growing competition in the market, supporters like Troy Dillon, a retired U.S. Air Force officer and Tesla shareholder, believe that "the deal was the deal" and are voting in favor of it.
Meanwhile, in Texas, a new player is entering the stock exchange arena. The Texas Stock Exchange (TXSE), backed by BlackRock and Citadel Securities, aims to challenge the dominance of the New York Stock Exchange and Nasdaq. With a $120 million initial capital raise and plans to operate as a national securities exchange, TXSE is positioning itself as a competitor that offers more choices for investors and issuers.
As Tesla navigates its pay package battle and TXSE prepares to shake up the stock exchange landscape, the future of both companies hangs in the balance, waiting to see if Musk's fans and investor support can make a difference in the decisions ahead.
Small investors tend to side with management, but many of them don't bother to vote, which could be a problem for Tesla. With Musk holding around 13% of the company's stake, top outside investors like Vanguard and BlackRock are remaining tight-lipped about their voting intentions.
Both major proxy advisers, Institutional Shareholder Services and Glass Lewis, have advised against ratifying the pay package, citing it as excessive. This could spell trouble for Tesla, as historically, resolutions with both proxy advisers recommending votes against them have had a lower success rate.
Online, Musk still has a strong following, with influential users like Omar Qazi and Alexandra Merz rallying support for the pay package. Despite Tesla's stock price facing challenges and growing competition in the market, supporters like Troy Dillon, a retired U.S. Air Force officer and Tesla shareholder, believe that "the deal was the deal" and are voting in favor of it.
Meanwhile, in Texas, a new player is entering the stock exchange arena. The Texas Stock Exchange (TXSE), backed by BlackRock and Citadel Securities, aims to challenge the dominance of the New York Stock Exchange and Nasdaq. With a $120 million initial capital raise and plans to operate as a national securities exchange, TXSE is positioning itself as a competitor that offers more choices for investors and issuers.
As Tesla navigates its pay package battle and TXSE prepares to shake up the stock exchange landscape, the future of both companies hangs in the balance, waiting to see if Musk's fans and investor support can make a difference in the decisions ahead.