NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Some Nordic retail brokers allow clients to vote at Tesla AGM

Published 06/11/2024, 08:35 AM
Updated 06/11/2024, 08:41 AM
© Reuters. FILE PHOTO: Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X looks on during the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 6, 2024.  REUTERS/David Swanson/File Phot
TSLA
-

By Louise Rasmussen

COPENHAGEN (Reuters) - Some Nordic retail brokerages are allowing clients to vote at Tesla (NASDAQ:TSLA)'s annual general meeting (AGM) this week, departing from their regular practice, after significant interest from investors and online comments from CEO Elon Musk.

The June 13 AGM is shaping up as a referendum on Musk's leadership, after a judge invalidated the CEO's $56 billion pay package in January, calling it an unfathomable sum.

As major shareholders appear divided over whether to endorse the package, Tesla is seeking support from retail investors who, excluding Musk and his brother, make up 48% of the ownership, an unusually high percentage, according to Bernstein.

Musk will need overwhelming support from retail investors since many institutional counterparts have opted to vote against his pay, a Bernstein note showed.

Musk in May said on social media platform X he would contact banks and brokers that did not allow investors to cast ballots, saying shareholders had the right to vote.

Swedish banking platforms and retail brokerages Avanza and Nordnet both said they had decided to let investors vote after customers requested to do so.

The two brokers, who together count nearly 150,000 Tesla shareholders among their clients, do not normally provide the option to retail customers to vote at non-European AGMs.

"Elon Musk has made it clear that it is important for him that the shareholders of Tesla make their voice heard on this year's AGM," said a Nordnet spokesperson.

"I think it is fair to say that his position has had an indirect effect on us."

Avanza said its decision was based on requests from its customers and the fact that Tesla was one of the most owned stocks on its platform.

Sweden's Swedbank as a part of its regular services registers clients' votes or helps facilitate their digital attendance at AGMs of non-European companies for a fee of 1,000 crowns ($95.23), a spokesperson said.

© Reuters. FILE PHOTO: Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X looks on during the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 6, 2024.  REUTERS/David Swanson/File Photo

Nordic banks DNB, Nordea, Danske Bank and SEB did not immediately respond to requests for comment.

($1 = 10.5011 Swedish crowns)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.