FMP

FMP

Enter

Scottish fund manager Baillie Gifford, a long-time shareholder of Tesla Inc (NASDAQ), is reportedly set to support Elon Musk's $56 billion pay package in an upc

Baillie Gifford Backs Elon Musk's $56 Billion Pay Package for Tesla

-

twitterlinkedinfacebook
blog post cover photo

Image credit: Bram Van Oost

Scottish fund manager Baillie Gifford, a long-time shareholder of Tesla Inc (NASDAQ), is reportedly set to support Elon Musk's $56 billion pay package in an upcoming shareholder vote scheduled for June 13, according to a Bloomberg report citing unnamed sources.

Baillie Gifford's Endorsement

  • Long-Standing Support: Baillie Gifford, which has been a Tesla shareholder for over a decade, is prepared to back Musk's pay package, signaling confidence in the CEO's ability to meet the ambitious targets outlined in the proposal.

  • Achievement of Targets: Musk's compensation package, initially approved in 2018 but later invalidated by a Delaware judge, is contingent on Tesla achieving specific performance milestones. Baillie Gifford reportedly believes that Musk has successfully met these targets.

  • No Comment: Baillie Gifford declined to comment on its stance regarding the pay package when approached by Bloomberg, but sources familiar with the matter confirmed the fund manager's support.

Mixed Responses

  • Institutional Opposition: Despite Baillie Gifford's endorsement, other institutional investors, including Institutional Shareholder Services (ISS) and Norway's sovereign wealth fund Norges Bank Investment Management, have voiced opposition to the compensation package. ISS has recommended shareholders vote against it.

  • Impact on Tesla's Stock: The ongoing debate over Musk's pay package has been cited as one of several factors affecting Tesla's stock. Approval of the package would be seen as a positive development, potentially alleviating concerns and distractions surrounding the company.

Moving Forward

  • Resolution of Overhang: Baillie Gifford's support for Musk's pay package represents a significant development for Tesla, as it seeks to address lingering uncertainties and focus on its core business objectives. Approval of the package could help Tesla navigate challenges in the competitive EV market.

  • Investor Sentiment: The outcome of the shareholder vote will be closely watched by investors and industry observers, as it may impact Tesla's strategic direction and investor sentiment in the near term.

As Tesla moves closer to resolving the controversy surrounding Elon Musk's compensation, the company faces critical decisions amid increasing competition and evolving market dynamics.

Discover High-Quality Investment Opportunities
Utilize advanced tools like Discounted Cash Flow (DCF) analysis to identify and invest in high-quality stocks that align with Morgan Stanley's recommended strategy. Make informed investment decisions with comprehensive financial insights. Learn More

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep