Tesla Shareholders Vote on $56 Billion Pay Package for Musk

Approval for Musk’s Pay Package and Texas Move

Tesla shareholders are voting on a $56 billion pay package for CEO Elon Musk and the relocation of the company’s legal home to Texas. Musk announced the vote on social media on Wednesday, June 12, stating that the approval was by wide margins.

Musk’s Social Media Announcement

“Thanks for your support!!” Musk posted on X, indicating strong shareholder backing for the largest remuneration package in U.S. corporate history.

Impact of Shareholder Approval

This overwhelming approval could ease investor concerns about Musk’s future with Tesla and bolster the company’s position in its ongoing legal battle to uphold the pay package. Despite the positive vote, Musk still faces a challenging legal process. He must convince a Delaware judge, who previously indicated the Tesla board was “beholden” to him, while also potentially addressing new lawsuits related to the vote.

Details of the Voting Process

The final results will be announced at Tesla’s headquarters in Texas at 4:30 pm (2130 GMT) on Thursday, June 13. A source familiar with the preliminary voting indicated that both big institutional investors and retail investors contributed to the “yes” vote.

Proxy Firms and Major Investors’ Positions

Major proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) had recommended shareholders reject the pay package. Additionally, significant investors like Norway’s sovereign wealth fund had expressed their intention to vote against it. However, shareholders can change their vote up until the annual meeting begins.

Other Shareholder Proposals

In addition to the pay package and legal headquarters move, Tesla shareholders are voting on the re-election of two board members: Kimbal Musk, Elon Musk’s brother, and James Murdoch.