Both proposals are opposed by the board and are unlikely to be adopted. But I’ll say it again, the annual shareholder meeting is one of the few Tesla events where outside, competing voices pierce the bubble.
This is a timely one, considering all the allegations that have been leveled at Tesla over the years regarding racism, gender discrimination, retaliation, and harassment. It won’t succeed, but its still striking to hear it all detailed by a shareholder at an extremely Musk-friendly event.
Another shareholder is excoriating Tesla’s board as lacking sufficient independence from Musk. “I believe the Tesla board of directors is the most conflicted, least independent, and most incapable board of directors in the history of business,” the shareholder says in a prepared statement. Tesla’s board recommends against his proposal too.
James McRitchie is presenting a proposal that is opposed by Tesla’s board. “The Musk premium is already eroding,” he said. “Tesla is Musk’s liquid piggy bank. Since it’s publicly traded, his other companies are not either. He sticks around long enough to use our shareholder capital to fund his other ventures, or he shifts his attention sooner if we reject his pay package, and turn off a money tap.”
Denholm defends the board, which has been accused by Delaware court as too chummy with Musk, as taking its fiduciary duties seriously. “With those responsibilities in mind, we continuously set the highest standards for ethical behavior, corporate citizenship and corporate governance.”
Prior to the votes on Musk’s pay package or the reincorporation in Texas, Denholm is touting Tesla’s sustainability and safety bonafides. She said that the company recovered enough battery materials to build 43,000 RWD Model Ys. On safety, she claims that Tesla vehicles with driver assist technologies engaged “have only a one vehicle accident per 5.64 million miles driven compared to the US.”
On time, too, which is rare for a Tesla event. Tesla board Robyn Denholm is up first, talking about the company’s wins for 2023-2024, including the Model Y becoming the best-selling vehicle in the world, and the release of the Cybertruck.
The Tesla CEO appears heading to victory in today’s shareholder vote over his enormous pay package. Musk posted two graphs on X last night which showed both proposals — the one of his compensation, and the other on reincorporating Tesla in Texas — ahead by wide margins. But the results aren’t final yet, and things could still go pear-shaped. After all, this is Tesla we’re talking about. Tune in at 3:30 pm CT if you want to watch Musk dive into a pile of cash, Scrooge McDuck-style.