Institutional Holders at Tesla like Musk in the Driver’s Seat

Tesla’s CEO and Chair, Elon Musk, has been in the hot seat after a thread of eyebrow raising actions, tweets and abrupt company resignations in recent months. With investor N-PX filings aggregating, TSLA’s three largest institutional holders, wielding 21.3% of the votes (on top of Musk’s 19.8%, reported on June 30th) voted against the proposal calling for the board’s Chair to be SEC “independent.” The shareholder resolution garnered 16% support from investors—well below the 31% average of like proposals submitted at Russell 3000 companies this past proxy season. Notably, this was the only one of its kind this year to be voted on at a company where an insider (also the CEO/Chair) held between 20% and 50% of voting share control.

General research regarding the Independent Chair shareholder proposal can currently be accessed by all clients on the Governance gateway. For more information or to receive a copy of this report, contact Managing Director, Dave M. Bobker at dbobker@rivel.com