Retail activist shareholder platform Tulipshare called on Tesla Inc. to tie its executive pay to environmental, social, and governance (ESG) factors and said it expects to file a shareholder resolution on the matter for the electric carmaker’s annual meeting next year.
Antoine Argouges, chief executive of Britain-based Tulipshare, said a decision by S&P Dow Jones Indices last spring to oust Tesla from a widely followed ESG index showed the company faces reputational and legal risks that investors will not tolerate.
“The mood of investors is super-ready to support a resolution like ours,” Argouges said in an interview on Tuesday. If executive pay were tied to goals like cutting emissions or worker rights, he added, “I can tell you those people will put their effort into solving the problems in the system.”…