Forbes

Tesla Shareholders Vote On Elon Musk’s $50 Billion Pay Package Next Week—Here’s What’s At Stake

On Thursday, Tesla will announce the result of the shareholders vote to approve CEO Elon Musk's $56 billion compensation package and to move the EV maker's legal headquarters to Texas. Musk expressed his gratitude in a post on X on Wednesday.

On Thursday, Tesla shareholders will cast their votes to approve CEO Elon Musk's $56 billion compensation package and to move the EV maker's legal headquarters to Texas. Musk expressed his gratitude in a post on X.

Musk stated that shareholder approval of the largest remuneration terms in US corporate history was by a large margin, providing the EV maker with strong support to contest a court decision overturning the compensation package.

The victory is significant for Musk and the board, who risked their credibility to win shareholder approval despite opposition from major investors Glass Lewis and Institutional Shareholder Services.

New York Post

The victory is significant for Musk and the board, who risked their credibility to win shareholder approval despite opposition from major investors Glass Lewis and Institutional Shareholder Services (ISS).

According to an internal agreement, the remuneration package will include stock options based on up to 12% of Tesla's outstanding shares in 2018. To be eligible to collect, Musk was required to achieve predetermined revenue or profit milestones to boost the stock market value to $650B.

The Economic Times

When the targets were set in 2018, few believed they could be met. Tesla's stock then rose to $1.2T in 2021. The stock price has since dropped to $545B, but it stayed above $650B long enough for Musk to qualify for the option.

In March 2018, most shareholders supported Musk's compensation plan. However, in January 2024, a Delaware judge overturned the plan. Large shareholders like criticized Musk's compensation as "excessive," and  warned of stock dilution, reducing the stock's value.

Musk says Tesla shareholders voting yes for his $56 bln pay package

Musk says Tesla shareholders voting yes for his $56 bln pay package

Sign Up for Our Free Newsletters
Sign Up for Our Free Newsletters

Musk says Tesla shareholders voting yes for his $56 bln pay package

Musk says Tesla shareholders voting yes for his $56 bln pay package

Sign Up for Our Free NewslettersSign Up for Our Free Newsletters

Sign Up for Our Free Newsletters
Sign Up for Our Free Newsletters