The automaker, which traditionally avoids advertising, even spent money on ads calling on Tesla investors to vote in favor of the compensation plan. Tesla showed in a filing with the Securities and Exchange Commission that it paid for some ads on Google, as well as through Musk’s social media site X.
“You deserve the final say on matters affecting your investment in Tesla,” reads an ad on X. “Vote FOR protecting shareholder rights and preserving present and future value creation by supporting Propositions 3 and 4 of Tesla.”
A screenshot of some of the paid ads Tesla ran to support Musk’s compensation proposal. SECOND
The company aims to pass two separate proposals, one moving its state of incorporation from Delaware to Texas and the other reapproving Musk’s salary, which was overturned by a Delaware judge earlier this year. In January, when the pay plan was overturned, Chancery Court Judge Kathleen St. J. McCormick said Musk had undue influence over the pay plan because of his close ties to several board members. of directors and said that Musk’s influence on Tesla’s board had resulted in “injustice.” price.”
A Tesla spokesperson did not immediately respond to a request for comment.
Musk does not receive a salary from Tesla and his compensation is focused on a series of goals around the automaker’s financial growth. The compensation plan was initially implemented in 2018. Specifically, it involves the granting over 10 years of 12 tranches of stock options that vest when Tesla achieves specific goals. When each milestone is achieved, Musk receives shares equal to 1% of the shares outstanding at the time of grant. Tesla has achieved all 12 goals by 2023, according to the automaker.
The project was valued at around $55 billion at the time it was struck down by the judge.
Advertising spending is one of several methods Tesla is using to try to get shareholders to vote in favor of the proposal. On Wednesday, the Wall Street Journal reported that Tesla Board Chairman Robyn Denholm planned to spend the weeks leading up to the June 13 shareholder vote traveling to build support for the initiative. Separately, Bloomberg reported Wednesday that Tesla had brought in a strategic advisor to promote the program.
Earlier in May, Denholm even watched a video promoting the compensation plan.
“We do not believe that one judge’s opinion should override the will of millions of votes cast by all the company’s owners,” the Tesla president said in the video. “So once again, we ask you to make your voice heard by voting to ratify the 2018 Performance Award.”
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