Schwab Asset Management Statement on Tesla Proxy

We appreciate your patience and understanding as we await the conclusion of the voting process for the Tesla shareholder meeting being held later this week. Schwab Asset Management's approach to voting on proxy matters is thorough and deliberate. We utilize a structured process that focuses on protecting and promoting shareholder value. We apply our own internal guidelines and do not rely solely on recommendations from Glass Lewis or ISS. In accordance with this process, Schwab Asset Management intends to vote in favor of the 2025 CEO performance award proposal. We firmly believe that supporting this proposal aligns both management and shareholder interests, ensuring the best outcome for all parties involved.

Schwab Asset Management uses a structured approach for deciding how to vote that is rooted in a singular goal - promoting shareholder value. Our Proxy Voting Policy focuses on: 1) board composition and quality; 2) actions a board has taken to drive strategy, deliver performance and manage relevant risks; and 3) clarity and accessibility of reporting on key issues. In assessing and making decisions consistent with our Proxy Voting Policy, data and insights are gathered from multiple sources, including through our strategic engagement program, and are all considered when making voting decisions. You can read more in our Investment Stewardship report.