Among the shareholders voicing their concerns are SOC Investment Group, Amalgamated Bank, AkademikerPension, Nordea Asset Management, New York City Comptroller Brad Lander, SHARE, Unison, and United Church Funds. These shareholders, who collectively represent more than 4.9 million shares of Tesla stock, have urged other investors to vote against Musk's compensation package and the reelection of Musk's brother, Kimbal, and James Murdoch to Tesla's board. Additionally, the California Public Employees' Retirement System, which owns about 9.5 million shares of Tesla stock, has indicated it will vote against Musk's pay package.
Key takeaways:
- Several institutional shareholders of Tesla have criticized CEO Elon Musk's decision to redirect a shipment of Nvidia chips away from the company, viewing it as further evidence that he doesn't deserve his multibillion-dollar pay package.
- Musk's compensation package, worth approximately $46 billion, was struck down in January by a Delaware Chancery Court Chancellor, and shareholders will vote on June 13 on whether to reinstate it.
- Musk diverted a $500 million shipment of Nvidia chips, essential for AI technology, from Tesla to his social media platform X. He justified this by stating that Tesla had no place to send the chips and they would have just sat in a warehouse.
- Several shareholders, including SOC Investment Group, Amalgamated Bank, AkademikerPension, Nordea Asset Management, New York City Comptroller Brad Lander, SHARE, Unison, and United Church Funds, have expressed concerns about Musk's commitment to Tesla and his conflicts of interest. They represent more than 4.9 million shares of Tesla stock, worth over $878 million.