Musk's pay package approval was a mistake: institutional shareholders
What specific concerns did institutional shareholders express about Elon Musk's ability to lead Tesla following the approval of his pay package?
Institutional shareholders expressed concerns about Elon Musk's ability to lead Tesla following the approval of his pay package, primarily questioning whether the $55 billion stock option is commensurate with his performance1. They also raised concerns about the company's governance and Musk's focus on other ventures, such as artificial intelligence and robotics, which they believe might distract him from Tesla's core business. Some investors even doubted if Tesla would be a better company with or without Musk.
What recommendations did AkademikerPension and other institutional shareholders make in their May letter regarding Tesla's board elections?
In their May letter, AkademikerPension and other institutional shareholders recommended that Tesla investors vote against Elon Musk's $55 billion pay package and the reelection of James Murdoch and Kimbal Musk to the company's board. The investors were concerned about the lack of board independence due to close relationships between board members and Musk, as well as the excessive compensation.
What was the reaction of Vanguard, Tesla's largest institutional shareholder, to the proposed pay package?
Vanguard, Tesla's largest institutional shareholder with a 7% stake in the company, voted to approve Elon Musk's $55 billion pay package. The support from Vanguard, along with other institutional shareholders, helped secure the majority approval of the pay package during the shareholder meeting.