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Some Nordic retail brokers allow clients to vote at Tesla AGM
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Some Nordic retail brokers allow clients to vote at Tesla AGM
Jun 11, 2024 6:03 AM

COPENHAGEN, June 11 (Reuters) - Some Nordic retail

brokerages are allowing clients to vote at Tesla'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.

Nordic banks DNB, Nordea, Danske Bank and SEB did not

immediately respond to requests for comment.

($1 = 10.5011 Swedish crowns)

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