Exclusive-Vanguard vote switch helped pass Tesla CEO Elon Musk's $56 billion pay package

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Exclusive-Vanguard vote switch helped pass Tesla CEO Elon Musk's $56 billion pay package
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Tesla's largest outside investor Vanguard said it voted in favor of CEO Elon Musk's $56 billion pay package, citing the company's performance, contributing...

- Tesla 's largest outside investor Vanguard said it voted in favor of CEO Elon Musk 's $56 billion pay package, citing the company's performance, contributing to the passage of the record-setting arrangement on Thursday.

Vanguard had 232 million Tesla shares as of March 31, or about 7% of the company, second only to the 13% stake held by Musk. While certain externally-managed Vanguard funds vote separately, a Vanguard spokesman said the note's descriptions covered the majority of its funds. But Vanguard, which has total assets of about $9 trillion, and other big index fund managers were always likely to be key to the vote. Representatives of Vanguard rivals BlackRock and State Street declined to comment about their votes on Thursday.In its note, Vanguard said while Musk's pay was "a substantial outlier" among CEOs, Tesla's shareholder return was in the 98th percentile of all Russell 3000 companies from 2018 through 2023.

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