Cathie Wood Says Elon Musk's New Tesla Pay Package Will 'Win Decisively' Despite Opposition: 'Sad, If Not Damning…'
Cathie Wood, CEO of ARK Invest, believes Elon Musk's new pay package will be approved at the upcoming Tesla shareholder meeting, despite opposition from the International Shareholder Services (ISS). Wood argues that institutional shareholders often rely on proxy firms for voting guidance, which she criticizes. She notes that Tesla's current S&P 500 representation is insufficient to sway index funds. Musk has defended the pay package, asserting Tesla's market value exceeds that of its competitors. Dan Ives from Wedbush Securities also anticipates approval of the package alongside an investment in Musk's AI venture, xAI.
ARK Invests' CEO Cathie Wood believes that Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk's trillion-dollar pay package will be approved during the shareholder meeting next month.
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A Decisive Victory
On Sunday, the investor took to the social media platform X to share her thoughts on the International Shareholder Services (ISS) opposition to Musk's pay package. "When shareholders first voted on @elonmusk's 2018 pay package, #Tesla was not in any index, and the pay package won decisively," Wood said. She added that Tesla was at 1.2% of the S&P 500 when the second pay package vote was "forced by an activist Delaware judge."
Tesla currently stands at 2.4% of the S&P 500, which Wood said was "not enough for index funds to swing the vote." She added that "Elon's [Musk] new package will win decisively."
In another post, she had criticized the ISS's recommendation to vote against the pay package. "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," She said, calling index-based investing a "form of socialism."
Elon Musk Hits Back, Dan Ives Says Pay Package Will Be A Major Focus
The news comes as Musk recently hit back at critics who expressed doubts about the new pay package, saying that Tesla was worth more than all of its competitors combined and currently has a $1.4 trillion market capitalization.
Meanwhile, Tesla bull and Wedbush Securities' investor, Dan Ives, said that Musk's new pay package, which would be a major focus in next month's shareholder meeting, would be approved alongside an investment in Musk's artificial intelligence company xAI.
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