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Open original source ↗When shareholders first voted on @elonmusk’s 2018 pay package, #Tesla was not in any index, and the pay package won decisively. In the second vote, forced by an activist Delaware judge, $TSLA was 1.2% of the S&P 500, and the pay package won decisively. Now $TSLA is 2.4% of the S&P 500, not enough for index funds to swing the vote, and I believe that Elon’s new package will win decisively. Although the proxy firm ISS has recommended against the package, retail investors are likely to dominate the vote once again. America!
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Isn’t it sad, if not damning, that institutional shareholders rely on proxy firms to tell them how they should vote?Index funds do no fundamental research, yet dominate institutional voting. Index-based investing is a form of socialism. Our investment system is broken.
CathieDWood ↗