Tesla Inc (NASDAQ:TSLA) investors are being urged to call on the electric vehicle maker link executive wages and bonuses to environmental, social and governance (ESG) factors.
Retail activist shareholder platform Tulipshare said it intends to submit a shareholder resolution on the topic during the group's AGM in 2023.
Antoine Argouges, chief executive of UK-based Tulipshare, argued linking executive pay to ESG goals would ensure those in charge tackle the climate change issue.
“I can tell you those people will put their effort into solving the problems in the system,” Argouges also noted.
He added investors would be “super ready” to support this proposition: “The mood of investors is super-ready to support a resolution like ours.”
The S&P Dow Jones indices’ decision to remove Tesla from its ESG index last spring reinforced Tesla could face reputational damage and legal risks.