Tesla shareholders have officially approved all company proposals at their annual shareholders meeting. They are backing the board – though they voted to shareholder proposals that the board recommend against.
There was no surprise at Tesla’s annual shareholders meeting – mainly because CEO Elon Musk had leaked the results from the two main proposals: the ratification of his 2018 CEO compensation package and the incorporation move to Texas.
We don’t have the official results with the percentages of shares voted for each proposals just yet, but Tesla’s IR confirmed that all board proposals have passed, including the board reelection of Kimbal Musk, Elon’s brother, and James Murdoch.
Tesla shareholders also shut down most shareholder proposals, but they did approve two of them that the board recommend against:
- A stockholder proposal regarding reduction of director terms to one year, if properly presented (“Proposal Six”).
- A stockholder proposal regarding simple majority voting provisions in our governing documents, if properly presented (“Proposal Seven”).
The board director terms were 3 years and they are now reduced to just 1 year.
As for the last proposal, it requires a regular majority to get shareholder proposal to pass, which should make future ones easier to pass as most of them were shut down today.