Musk successfully mobilized his fanbase to help push through his $55 billion pay package, and some of Tesla’s biggest supporters scored invites to the annual meeting.
Some also scored a factory tour with the CEO, which was one of many tactics Tesla used to boost the number of retail shareholders who voted on proposals, including Musk’s pay package and Tesla moving its state of incorporation from Delaware to Texas (which was also approved).
Musk and Tesla’s board did a full-court press in the lead-up to the vote, and it seems to have worked.
NYT’s Dealbook reported that Tesla succeeded in getting a higher-than-usual number of retail investors to vote, and Musk’s pay package passed with about 72% approval. Retail investors undoubtedly played a key role, but Tesla needed the support of some of its biggest institutional investors, like BlackRock and Vanguard, to get the pay package across the finish line.
Vanguard was Tesla’s largest outside investor that voted in favor of the pay package, according to a report from Reuters. Vanguard’s fund manager voted against the compensation package in 2018, the report said.
A triumphant atmosphere — and some dancing from Musk
For Muska and Tesla fans who made the journey to Texas for the meeting, the mood was celebratory.
Some wore “Cybertruck” shirts to the event and fans signed a large banner at the event emblazoned with the words “Don’t mess with Tesla retail shareholders.”
Musk danced his way onto the stage after it became official that his shareholders had re-approved his enormous pay package, jumping up and down to the crowd’s cheers.
“I just want to start off by saying, hot damn! I love you guys,” Musk said at the meeting.
Thursday’s vote made one thing crystal clear: For many of Tesla’s retail shareholders, the feeling is mutual. Most of the questions posed to Musk during the Q&A segment started with the shareholders singing their praises to the Tesla CEO.
One shareholder started by saying, “We love you so much, Elon,” and another said he moved to Texas thanks to Musk. One shareholder referred to him as “an absolute idol” and asked if Musk was taking care of his safety and health because he cared about him as a person.
Musk ate it up. The CEO was in high spirits and even agreed to make one of the proposed changes from shareholders on the spot, like offering one more quarter of a limited-time Full Self-Driving transfer to new vehicles.
Musk’s tendency to make bold and ambitious promises, even if they shift, is part of what excites his fanbase. His ability to achieve seemingly impossible goals, like the ones entailed in his performance-based compensation plan, has clearly fueled loyalty and passion for his vision.
Read the full article here
