TECH - Tesla's Largest Outside Investor Vanguard's Vote Switch Helped Pass Elon Musk's $56B Pay Package | Benzinga
At Tesla Inc.'s (NASDAQ:TSLA) recent shareholder meeting, the influential investment firm Vanguard was pivotal in approving CEO Elon Musk's notable $56 billion compensation package, affirming their support based on Tesla's exceptional performance and shareholder value creation.
Vanguard's endorsement of Tesla comes after initially opposing Musk's remuneration plan in 2018 due to concerns over its size relative to company performance.
However, the alignment of Musk's compensation with Tesla's substantial shareholder returns since then led to a change in their stance, according to a report from Reuters.
The remuneration package, which a Delaware judge had previously invalidated in January, necessitated a re-vote.
Despite some resistance from top proxy advisers and significant investors worried about the package's scale, Vanguard's support was crucial in its passage.
Tesla pulled out all the stops to convince its growing base of retail investors to reapprove Musk's pay ...