Tesla d’Elon Musk finally establishes a date of meeting of shareholders in doubts about her 56 billion long -term dollars salary pack
Better late than never. Tesla announced on Thursday that it will hold an annual shareholder meeting on November 6. The announcement comes approximately 24 hours after a letter of more than two dozen investors in the electric vehicle manufacturer of $ 952 billion supported the board of directors of the next Mano a Mano with its shareholders.
The last annual shareholder meeting was an event with high issues that saw investors approving the controversial remuneration pack of the CEO Elon Musk a second time and the Green-Light has moved from Delaware to Texas. Under the law of Texas, Tesla is required to hold an annual meeting within 13 months of the last, which was held on June 13, 2024. Tesla informed the investors of the Assembly and set a deadline of July 31 for the shareholders to submit proposals.
Harvard law professor, John Coates, John Coates Fortune Texas law provides that companies like Tesla must organize annual meetings and that any shareholder can ask for justice if we have not been held in the 13 months.
“It is not a crime, however, not to have one, and there is no particular penalty to wait for a shareholder to ask one,” he said. Calling Tesla’s delay “illegal” would be misleading, he explained.
However, it is “certainly not normal not to hold a meeting within 13 months,” said Coates. “Usually it is the small under-resources or distress companies that do not do it,” he said.
Meanwhile, Tesla has not yet filed a declaration of proxy – which informs the shareholders of the agenda of the meeting and the articles to vote – which would probably answer whirling questions on the controversial remuneration of Musk. To update: its remuneration package was structured as a subsidy of the Mega of Moshot initially valued at 2.6 billion dollars before soaring with shareholders’ fortunes up to $ 56 billion. It had to be the strongest remuneration ever allocated to the CEO on a listed company. However, an investor challenged him before the court, and the judge of the Delware Chancery Court, Kathaleen St. J. McCormick, canceled him twice – even after Tesla investors approved it the second time last year.
In the current state of things, it is not clear how the board of directors of Tesla will carry out Paying Musk, a prerogative to keep him hired in Tesla in the midst of his other interests and competing companies, said the chairman of the board of directors Robyn Denholm. Tesla faced serious pressures from investors on Musk’s work with the Ministry of Government Effectiveness of President Donald Trump (DOGE) and later Musk’s bustle with Trump. This followed with Musk announcing that he would create a third political party, the “American party”. The announcement led to a sale in Tesla shares, which led to $ 15 billion to wipe the net value of Musk.
After the announcement of the date of the meeting, some of Tesla’s investors were disappointed.
In a press release, New York controller Brad Lander said that the announcement was a “welcome, although late, recognizing that the rule of law applies to everyone – even the richest man in the world and his business.
“The basic rules of corporate governance are not optional; These are fundamental protections for shareholders and public procurement, ”said Lander.
Lehigh County Controller Mark Pinsley, a member of the Lehigh County Pension Board, who voted last May to interrupt any new investment in Tesla in the County managed funds, said that Musk’s political ambitions have transformed Tesla, a business formerly transforming, into a cultural flaw line.
“It is time he was deviating,” said Pinsley Fortune. “His tangle growing in politics, including his flirt with the launch of a new political party, makes Tesla an indicator of ideological battles rather than a company focused on the service of its workers or customers.”
Pinsley said Tesla “greatly benefits” to be part of the S&P 500, which means that index funds are forced to continue investing in action. It creates an artificial demand which is largely not linked to fundamentals such as income, innovation or governance, he said.
“I understand the long -term promise of autonomous taxis,” said Pinsley. “However, we are still in years to generate significant income, so the [price-to-earnings ratio] It remains to escape everything from the underlying fundamental principles. »»
In addition, Tesla has become a lightning rod, he said, more conflicting than a visionary, which is a shame for a company that once held a real promise to shape society, added Pinsley.
“Tesla is not riding innovation at the moment, he is riding inertia,” he said. “Its place in the S&P 500 maintains the request for its artificially high stock, whatever the performance.”
