(CTN News) – Tesla just filed its annual proxy statement with the SEC, which revealed a three-for-one stock split and that Larry Ellison does not plan to run for re-election.
Tesla shares rose by more than 1% after-hours after closing at $696.69 on Friday.
According to the filing, Tesla wrote that “Our success depends on attracting and retaining excellent talent” and that “highly competitive compensation packages,” which offer every employee an option to earn equity, helped Tesla achieve this.
Tesla Files to Split Shares 3-for-1 as Investors Bail on Stock
The Stock Split would allow our employees to manage their equity with more flexibility by resetting the market price of our common stock.
Small investors might feel they can afford stock after a split, but they’re minuscule compared to big institutions. Brokerages already offer investors fractional trading, allowing even small investors to buy a piece of seemingly expensive stocks.
As part of its 2022 proxy filing, the electric car and renewable energy company also revealed that board member Larry Ellison owns 1.5% of Tesla shares. Ellison plans to step down as a member of Tesla’s board of directors.
Elon Musk, Tesla’s CEO, currently holds 23.5% of Tesla shares, while Vanguard owns 6%. In late 2021, Musk sold a significant chunk of Tesla stock to shore up his stake in Twitter, the social networking giant he agreed to acquire for $44 billion.
The Tesla stock split will be five-for-one in August 2020.
Tesla is being asked to examine and disclose more about: anti-harassment and discrimination efforts, lobbying practices, supply chains, and labor, as well as details about its own water use and climate risks related to water.
A limited number of shareholders will be invited to attend the company’s annual shareholder meeting in person at the new Tesla Factory in Austin, Texas on August 4, 2022.