All articles tagged with #shareholder rights
Originally Published 26 days ago — by Reuters
A new White House order aims to limit the influence of proxy advisory firms like ISS and Glass Lewis, which could weaken shareholder rights and impact ESG considerations in investment decisions, reflecting broader efforts to shift power towards CEOs and away from activist shareholders.
Originally Published 1 year ago — by TESLARATI
ARK Invest's Cathie Wood criticized the Delaware court's decision to void Elon Musk's 2018 performance-based pay package, calling it "unAmerican" and an assault on investor rights. Wood and ARK Invest's General Counsel analyzed the court decision and argued that it missed key points. In response, Musk posted a poll about changing Tesla's state of incorporation to Texas, and shareholders have written to the Tesla Board of Directors supporting this change and requesting options to keep Musk's 2018 pay package in place.
Originally Published 1 year ago — by The Guardian
Elon Musk lost a $56 billion pay package in a legal battle brought by Richard Tornetta, a former thrash metal drummer with just nine shares of Tesla. The judge voided the deal, ruling it unfair to shareholders. Tornetta's case highlights the role of individual investors in corporate litigation, as they can hold companies accountable and save billions of dollars. This case is seen as a significant event in corporate law, with experts emphasizing the importance of such individuals in policing boardrooms.
Originally Published 1 year ago — by The Guardian
A Delaware judge ruled that Elon Musk's $55.8 billion incentive package at Tesla in 2018 was over the top and unfair to other shareholders due to its dilutive effect on their holdings. The judge highlighted the lack of independence in the process and the unnecessary nature of the award, ultimately ordering the share options to be voided. This decision injects a dose of sanity into the process of awarding executive rewards at publicly traded companies and emphasizes the importance of independent directors representing the interests of all shareholders.
Originally Published 2 years ago — by The Guardian
ExxonMobil has filed a lawsuit to block a vote on a climate resolution brought by a Dutch green activist investor group, arguing that the proposal violates SEC investor petition rules. The move is being closely watched by other oil and gas companies and green groups as environmental campaigners attempt to hold fossil fuel companies accountable for their emissions. The lawsuit comes ahead of ExxonMobil's annual meeting in May, and follows a similar resolution facing Shell. ExxonMobil's UK subsidiary, Esso Petroleum Company, saw a surge in pre-tax profits and turnover, driven by economic recovery post-Covid, despite an increase in gross emissions.
Originally Published 2 years ago — by Semafor
A coalition of lawyers and investors is planning to challenge the diversity, equity, and inclusion (DEI) policies of major companies, arguing that these policies may violate corporate law by not hiring the best talent and potentially breaching duties to shareholders. They also suggest that if HR policies are not applied equally across different racial or religious groups, companies could be violating federal employment laws. This movement is an extension of the ongoing debate over free speech and antisemitism on college campuses and represents a new front in the fight against corporate DEI initiatives. The group intends to request HR data from companies to potentially build legal cases.