Influencer Sawyer Merritt has criticized investment firm Charles Schwab for voting against Tesla Inc. CEO Elon Musk‘s trillion-dollar pay packet. Merritt threatened to move all of his assets to other brokerage firms if Charles Schwab’s proxy voting policies do not reflect shareholder interests.
We Are Ready to Move Shares
Another influencer and Tesla investor, Jason DeBolt, also called out Charles Schwab for voting against the pay package. DeBolt noted that 6 of the firm’s ETF funds voted against Tesla’s recommendation, managing over 7 million Tesla shares. Merritt quoted DeBolt’s post and also expressed his disappointment with Charles Schwab’s decision.
“I can’t in good conscience stay with a brokerage that votes against this CEO Performance Award plan,” Merritt said. “The package is clearly in shareholders’ best interests, and the Board’s recommendations in the past have delivered extraordinary returns.”
Elon Musk’s Pay Package Faces Opposition
Elon Musk’s pay package has been facing opposition ahead of this month’s Tesla shareholder meeting. Proxy advisory firms like International Shareholder Services and Glass Lewis have recommended investors vote against the pay package. This prompted Musk to call them “corporate terrorists” during Tesla’s earnings call.
California Public Employees Retirement System, a fund holding over $2 billion in Tesla shares, also opposed the pay package, stating that the award would consolidate power. Investment firm Gerber Kawasaki‘s co-founder Ross Gerber called the pay package “insanity” and questioned the Board’s independence from Musk’s influence.
Substantial Support for Pay Package
Despite the opposition, the pay package has received support from firms and industry experts, including ARK Invest CEO Cathie Wood, who predicted that the package would win “decisively” at the shareholder meeting. Wood also criticized the proxy advisory firms.
The package was also backed by TV host Jim Cramer, who said that Musk was worth the compensation award. Cramer urged investors not to be “small-minded” and vote in favor of the package.
The State Board of Administration, a Florida-based agency responsible for managing and investing the Florida Retirement System‘s trust fund, also backed the package. The SBA owns over $1 billion in Tesla shares.
Tesla’s Stock Performance
Tesla scores well on Momentum and Quality metrics, offering satisfactory Growth, but poor Value. The company has a favorable price trend in the Short, Medium, and Long term.