Now that the well-publicized Tesla proxy battle has concluded with a ringing shareholder endorsement of Mr. Musk’s compensation package, it might be a good time to look at the proxy process.
If you’re a shareholder, proxy voting is your opportunity to have a voice in management decisions. Here at Sigma, we continue to take proxy voting very seriously and, as a fiduciary, our votes reflect our best estimate of the path to improved shareholder value.
As in any election, each participant’s voice is one of many. However, the proxy voting process, while far from perfect, gives every shareholder an opportunity to have a say in how the company is governed.
Investors should also be aware that the proxy process is ripe for abuse, as special interest groups attempt to promote agendas that may not be consistent with maximizing financial returns.
All comments and suggestions are welcome.
Walter J. Kirchberger CFA
