Tesla
Tesla CEO set to win $56 billion pay package
Tesla CEO, Elon Musk says the majority of shareholders have voted in favor of his $56 billion pay package and he’s set to win it.
This year’s shareholders meeting includes two resolutions – the compensation package and moving Tesla to Texas. The images published on X show that these two resolutions have received a majority of “For votes” compared to “Against votes”.
The official results for this voting will be announced at Tesla headquarters in Texas at 4:30 pm on Thursday, June 13, 2024.
Both Tesla shareholder resolutions are currently passing by wide margins!
♥️♥️ Thanks for your support!! ♥️♥️ pic.twitter.com/udf56VGQdo
— Elon Musk (@elonmusk) June 13, 2024
Chronology
Musk’s pay package saga tangled around the electric vehicle maker’s progress in the EV world and the size of its growing share growth. In 2018, the Tesla board proposed a compensation plan for Musk on a performance basis.
The terms for this massive package are based on progress milestones. If failed, Musk won’t receive any compensation. Over the next five years, Tesla achieved landslide growth and Musk on the other hand completed these required milestones.
However, a shareholder challenged this pay package and filed a lawsuit against the board’s decision. There are two arguments in the lawsuit including:
- The estimated $56 billion pay package was too high despite the company’s performance and growth.
- The shareholder also claimed that the board had not assessed the pay package correctly and failed their fiduciary duties.
In January 2024, A Delaware judge called the board’s decision “unfavorable and unfair” to shareholders. Therefore, the court prevented Musk from receiving stock options until the issue resolved.
Tesla jumped back into this matter and conducted a shareholder’s vote on whether to re-approve the 2018 pay package. Shareholders believe that Musk is the face of the company and he needs to be paid to ensure growth. However, some major shareholders don’t agree with this fact and voted no for this resolution.
Only the final results will reveal more details about on Musk’s pay package.
