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Tesla Shareholders Approve Record-Breaking New Pay for Elon Musk

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Tesla shareholders have resoundingly backed a historic pay package for CEO Elon Musk, marking a significant victory for the billionaire entrepreneur. At the company’s annual meeting held in Texas, shareholders enthusiastically supported the payout, which could amount to a staggering $56 billion depending on Tesla’s share price.

“Hot damn, I love you guys,” Musk exclaimed to the crowd of supporters gathered for the meeting, showcasing his appreciation for their backing.

The approval of the unprecedented compensation plan comes after a protracted battle that saw a judge in Delaware initially void the package earlier this year. The decision, which was in response to a lawsuit filed by a small investor, raised questions about the board’s independence and Musk’s influence within the company.

Despite the legal setback, Musk rallied his base of supporters, particularly individual investors, who played a significant role in the decision-making process due to their sizable presence among Tesla shareholders.

Analysts viewed the shareholder approval as a vote of confidence in Musk’s leadership and the company’s future prospects. Shares in Tesla surged nearly 3% following the announcement, reflecting investor optimism about the deal’s potential impact.

“This outcome signals investor confidence in the deal and diminishes concerns about Musk’s potential departure from the company,” remarked Dan Ives, an analyst at Wedbush Securities.

The compensation package grants Musk rights to approximately 300 million Tesla shares, equivalent to roughly 10% ownership in the company, as a reward for achieving ambitious performance targets.

However, the vote is not binding, and legal experts have raised questions about whether a court will accept the results and allow the pay package to proceed. In her earlier ruling, Judge Kathaleen McCormick criticized the package as “unfair” and questioned the process by which it was determined.

In addition to approving the pay package, shareholders also backed a plan to move Tesla’s legal headquarters to Texas and re-elected two board members: James Murdoch and Musk’s brother, Kimbal Musk.

The board defended the pay package, arguing that Musk’s leadership was instrumental in Tesla’s success and that the incentive was necessary to ensure his continued dedication to the company.

Meanwhile, Musk offered a personal tour of Tesla’s factory in Texas to some shareholders as a gesture of appreciation for their support.

The approval of the record-breaking pay package underscores Musk’s influence within Tesla and the extent to which shareholders are willing to back his vision for the company’s future.

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