Yasmin Khorram of Yahoo Finance reports:
Tesla (TSLA) shareholders are answering a $56 billion question at the company’s annual meeting today: Should Elon Musk’s record-breaking compensation plan be reinstated after a Delaware judge struck down his previous compensation plan?
“I’m not enthusiastic, but I’m voting in principle,” early investor Ibrahim Alhusseini told Yahoo Finance. Putting personal feelings aside, he said Tesla should honor the package that was rejected in 2018.
“That was the deal: Elon achieved a milestone, so he should get paid.”
Al-Husseini, founder of venture capital firm Full Cycle, invested in the electric vehicle company in its Series C funding round in 2006. He said he steadily sold most of his stake over the next decade.
“We rode it through to a trillion-dollar market cap. A lot of wealth has been created and his compensation was decided by the board,” Al-Husseini added, although he believes most of his colleagues will vote against him this time.
But retail investors currently own about 40% of Tesla, and Musk has argued that they support his compensation. Over the weekend, the billionaire posted on Twitter that “nearly 90% of retail shareholders who voted” voted in favor of the package, and “public opinion is clear.”
Tesla shares rose 4% on Thursday.
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