Elon Musk claims that about 90% of the retail shareholders who have voted support reinstating his pay package and moving the company's incorporation to Texas. However, 90% represents a minority of total shareholders since retail shareholders own less than half of Tesla's outstanding shares, with the majority held by institutional investors. Regardless of the shareholder vote results, the legal appeal process around Elon Musk's compensation will still take months to resolve. Elon Musk publicly agreeing with statements that frame the vote as being about "shareholder democracy" rather than his compensation package could hurt Tesla in future litigation.
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00:00It's Benzinga, and here's what's on the block.
00:02Elon Musk claims that about 90% of the retail shareholders who voted so far to support reinstating
00:08his pay package and moving the company's incorporation to Texas.
00:11However, 90% represents a minority of total shareholders since retail shareholders own
00:16less than half of Tesla's outstanding shares, with the majority held by institutional investors.
00:22Regardless of the shareholder vote results, the legal appeal process around Elon Musk's
00:25compensation will still take months to resolve.
00:29Elon Musk publicly agreeing with statements that frame the vote as being about shareholder
00:33democracy rather than his compensation package could come back to hurt Tesla in future litigation.
00:38For all things money, visit Benzinga.com.