Part 5/13:
This episode underscores a broader trend: small individual investors, when united and vocal, can sway major institutional decisions. The Tesla community’s collective action demonstrated that activism can influence proxy voting, even at large financial firms that traditionally follow proxy advisory recommendations.
Charles Schwab publicly explained their shift, stating that while they usually abstain from commenting on votes in advance, the exceptional circumstances led them to support Elon Musk’s retention. They emphasized that their decision aligns with "supporting management and shareholder interests," though critics argue that their initial opposition in previous years was inconsistent with a strict shareholder-value approach.