Also on the agenda are shareholder proposals for corporate
governance-related items, including endorsing the right of employees to form a
union and asking the company to report its efforts in preventing racial
discrimination and sexual harassment annually.
The meeting comes as Tesla chief Elon Musk and Twitter are
slugging it out in a legal battle after the world's richest person said last
month that he was abandoning a $44 billion takeover offer for the company.
Musk owns 15.6 percent of Tesla, according to data from
Refinitiv, after selling millions of shares over much of the last year.
Tesla first announced its plan to seek investor approval to
increase its number of shares in March, two years after a five-for-one split
helped bring down the price of the high-flying stock within the reach of
ordinary investors. Tesla is now proposing a three-for-one split.
Tesla shares, which debuted at $17 apiece in 2010, rose to more than $1,200 late
last year after the 2020 stock split, taking the company's market
capitalization above $1 trillion.
While a split does not affect a company's fundamentals, it
could buoy the share price by making it easier for a wider range of investors
to own the stock.
Tech heavyweights Alphabet, Amazon, and Apple have also
announced stock splits in the recent past.
Tesla shareholders will also vote on the board's proposals
to reduce the term of its directors to two years from three as well as re-elect
Ira Ehrenpreis and Kathleen Wilson-Thompson.
Proxy advisory firm Institutional Shareholder Services (ISS)
last month recommended Tesla investors to vote against the two nominees.
A shareholder proposal, asking the board to enable large and
long-term stockholders or groups with at least 3 percent of the company's
shares to put competing director candidates on the company ballot will be put
to vote at the meeting.
Tesla in its proxy filing said this may create an
opportunity for special interests that seek only short-term returns rather than
having the company's long-term interests in mind.
In a board proposal, the company asked shareholders to
approve removing some supermajority voting requirements, saying that it would
give its "stockholders a greater voice".
Proxy advisory firms Glass Lewis and ISS recommended
stockholders to vote for both proposals.
The annual meeting is due to start at 5.30 pm ET (3am IST on
Friday). © Reuters
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