Just in case any of you own this ETF.
https://www.404media.co/you-probably-unwittingly-voted-to-give-elon-musk-a-huge-raise/
Lmao what the fuck? That’s an objectively stupid and unprofitable move, even in a purely capitalistic sense. No sane stockholder should vote to hand any one person that amount of money.
I’ve read plausible explanations that when your company is a meme stock, you need the thing that makes it a meme to stay around lest the price fall to reasonable levels dictated by market demand.
In other words they gotta give him the money or else the fanbois will stop pumping up the price.
Pretty much:
switched its vote “given the strong alignment of executive pay with shareholder returns since 2018 and the benefits the board asserted related to the motivational value for the CEO in preserving the original deal.” Vanguard also voted to allow Musk to relocate the company from Delaware (which is the site of a big lawsuit about Musk’s pay) to Texas.
IIRC most of the proxy voting firms like Glass Lewis and ISS tell the ETF types to vote in favor of mgmt. Because reasons, apparently
Headline:
You Probably Unwittingly Voted to Give Elon Musk a Huge Raise
Article:
If you are privileged enough to have a 401(k), an IRA, or any sort of investment account
I am so not privileged, so I guess the one bonus to that is I didn’t give Elon a raise.
MOTHERF*****
Don’t look at me. I contacted my fund managers at Fidelity and let my concerns be heard. They also voted yes.
I’m not gonna stop running my 401k, I’m on track for my retirement. I have to allow this fucknugget to run the company into the ground because the stock market is detached from actual wealth, and his meme stock is unironically paying for my future (until its not, which could be any day now). This fucking sucks, man!
Didn’t they actually vote against the compensation package when it was originally proposed? I’d really like to hear a more indepth reason on why they changed their vote now.
There is no way he is worth this kind of money for the future, so the only reason to vote yes imo is if they’d expect a court to uphold it, if denied, and that legal fights would be to costly. But with this sum at stake I’d take those chances.
