Tesla shareholders have reported approved the company’s CEO Elon Musk’s $56 billion pay package. This approval comes after the billionaire and the shareholders of the electric carmaker went through a fierce legal battle. In this battle, Musk fights to retain the largest-ever compensation package granted to an executive at a US-listed company.
The vote result was announced at Tesla’s annual meeting at its headquarters in Austin, Texas, US.
The support for Musk’s pay package which also includes stock options is a relief to the Tesla board who were worried that a rejection may lead him to spend less time managing Tesla or possibly even resign.
What Musk said to Tesla shareholders
“I just want to start off by saying, damn hot, I love you guys,” Musk said after appearing on stage following the vote.
“I think we’re not just opening a new chapter for Tesla, we’ ..
The shareholder vote comes after a Delaware ..
According to Ives, some shareholders are concerned that Musk might decamp for another business or start a rival company if he isn’t richly rewarded for working at Tesla. That’s a threat that Musk himself has issued, stating in a post on X in January that he wanted 25% voting control of Tesla or he might leave.
Tesla chairwoman Denholm echoed those sentiments, writing in a June shareholder letter, “If Tesla is to retain Elon’s attention and motivate him to continue to devote his time, energy, ambition and vision to deliver comparable results in the future, we must stand by our deal.”
Are some shareholders voting against the pay deal?
Yes, some shareholders had spoken publicly about the package, most notably the California’s State Teachers Retirement System.
The large pension fund said Tuesday that it would vote against Musk’s pay “based on its sheer magnitude, and because the award would be extremely dilutive to shareholders. We also have concerns with the lack of focus on profitability for the company.”
Tesla’s top five institutional shareholders — Vanguard, BlackRock, State Street, Geode Capital and Capital Research — either said they wouldn’t announce their votes or wouldn’t comment. They controlled about 17% of the votes.
