Vanguard switched vote to pass Elon Musk's $56 billion pay package for Tesla

From Investing.com: 2024-06-14 16:35:46

Vanguard, Tesla’s largest outside investor, voted in favor of Elon Musk’s $56 billion pay package, citing company performance. Initially against the package in 2018 due to its size, Vanguard changed its stance due to alignment with shareholder returns. Musk’s pay was invalidated in January; top proxy advisers and big investors were concerned.

Vanguard, with 232 million Tesla shares as of March, second only to Musk’s 13%, is influential in the vote. Big index fund managers like BlackRock and State Street also key. Exact voting tallies not disclosed. Tesla’s shareholder return ranks in 98th percentile. Recent performance sagged with increased competition in the electric vehicle market.

Vanguard backed moving Tesla’s incorporation to Texas, seeing no material differences compared to Delaware. Lawsuit on Musk’s pay package in Delaware ongoing, could last for months despite Thursday’s approval. Tesla closed up 2.9% after the vote. Vanguard’s note not address the current performance but emphasized Tesla’s market value creation.



Read more at Investing.com: Exclusive-Vanguard vote switch helped pass Tesla CEO Elon Musk’s $56 billion pay package By Reuters