Watch live: Tesla shareholders vote on Elon Musk’s $46 billion pay package
Some five months after a Delaware judge struck down Tesla CEO Elon Musk’s $46 billion compensation package, investors may put it back on the table.
Tesla’s annual meeting of shareholders is Thursday afternoon, beginning at 3:30 p.m. CT — in Texas, where the company is headquartered — or 4:30 p.m. ET. The meeting will open up Tesla to a number of operational changes and serve as a referendum on Musk, who has served as CEO since 2008 and both delighted and turned off investors and customers in equal measure.
Voting on the 12 ballot measures up for investors’ consideration — only two of which have to do with Musk’s compensation — closed Wednesday night, including proposals supporting the reapproval of Musk’s pay deal and a move to reincorporate in Texas, as well as the reinstatement of two members to Tesla’s board of directors. They will also vote on appointing a public accounting firm for the fiscal year and eight shareholder proposals.
On Wednesday night, shortly before the polls closed, Musk wrote on X, thanking his supporters for their votes. “Both Tesla shareholder resolutions are currently passing by wide margins!” Musk said, sending Tesla stock higher. The official results will be revealed Thursday.
Read More: Elon Musk’s $46 billion Tesla pay plan faces a big vote today. Here’s what you need to know
Institutional investors have been somewhat split on the matter, with major shareholders Norges Bank Investment Management and CalPERS taking public stances against Musk’s priorities, while Ron Baron and Scottish Mortgage Investment Trust pledge their votes in his favor. Other major shareholders have not publicly stated where they stand on the vote, including Vanguard, State Street, and BlackRock.
A vote in favor of Musk’s compensation is more symbolic than legally binding and is expected to largely be used as a selling point in Tesla’s potential appeal of the Delaware judge’s ruling. Although, that will have to wait until after legal fees in the January case are resolved.
Besides the votes themselves, Musk is expected to address investors where he will layout some of Tesla’s priorities and give updates on initiatives. Wedbush Securities Dan Ives — who reacted to Musk’s Wednesday night post by naming it a “pop the champagne moment” — on Thursday wrote that he expects Musk to address artificial intelligence plans, recommit to staying on as Tesla’s CEO for the next three to five years, and address autonomous vehicle plans.
Tesla Proposal 1
The first measure on Tesla’s ballot is the re-election of Kimbal Musk, Elon Musk’s brother, and James Murdoch, a longtime friend and the former head of 21st Century Fox.
Tesla Proposal 2
Tesla’s second measure is the approval of executive compensation for the company’s executives, including Senior Vice President of Automotive Tom Zhu and CFO Vaibhav Taneja.
Tesla Proposal 3
Number three on the ballot is Tesla’s potential reincorporation in Texas, which Musk first publicly proposed in January. Another of his companies, SpaceX, made the move in February.
Tesla Proposal 4
The fourth proposal put forward by Tesla is Musk’s compensation which, by the executive’s own admission, is likely to be officially approved by shareholders.
Tesla Proposal 5
The company’s final proposal is the appointment of PricewaterhouseCoopers as Tesla’s public accounting firm for the fiscal year ending December 31.
Shareholder Proposal 1
The first proposal from shareholders was submitted by James McRitchie, who owns more than 100 common shares. The proposal would require each member of the Tesla’s board to face re-election after one year in that position.
Shareholder Proposal 2
Tesla shareholder John Cheveddon, who owns more than 100 common shares, put forward a proposal that would require a simple majority for all votes. Similar proposals have been made at past meetings, but none have passed.
Shareholder Proposal 3
New York City Comptroller Brad Lander, who represents several municipal funds that together own 3.4 million Tesla shares, is behind a proposal that seeks to require annual reporting on anti-harassment and discrimination efforts at Tesla. The company has been repeatedly accused by ex-employees of fostering a culture that allows for discrimination, harassment, and sexual harassment at its facilities.
Shareholder Proposal 4
The SOC Investment Group, which has said it will vote against Musk’s compensation and the re-election of Kimbal Musk and Murdoch, wants Tesla to adopt a collective bargaining policy that includes a pledge to not interfere with organizing efforts. Tesla has been accused of interfering in union activity at its plant in Buffalo, New York.
Shareholder Proposal 5
The fifth proposal put forward by shareholders was done by Lendri Purcell, who requests that Tesla reports on the effects and risks associated with electromagnetic radiation and wireless technology.
Shareholder Proposal 6
Tulipshare, an activist investment group in the U.K., has put forward a proposal that would require Tesla to adopt sustainability metrics, such as diversity among senior executives and human rights considerations. In its opposition statement, Tesla notes that it already complies with United Nations principles regarding human rights.
Shareholder Proposal 7
The final measure comes from advocacy group As You Sow, which focuses on promoting corporate social responsibility. The nonprofit is asking shareholders to vote on a freeze on sourcing minerals from deep sea mining activities.
This post will be updated to reflect the results of each proposal.