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Home » Analysis-Tesla activist investors to seize on Elon Musk pay ruling

Analysis-Tesla activist investors to seize on Elon Musk pay ruling

    Activist investors who have for years accused Tesla's board of failing to rein in Elon Musk say this week's court ruling on the electric vehicle maker CEO's compensation could give them the shareholder support they need for reforms. These investors have offered various resolutions at Tesla annual shareholder meetings on corporate governance issues such as director term lengths or voting thresholds for new bylaws, but so far they have won few changes. Now, Tesla's critics say a Delaware judge's ruling voiding Musk's record-breaking $56 billion stock compensation was so critical of its board for being beholden to Musk, they hope to win more of the support needed from big index funds and other investors to prevail in shareholder votes.

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