Elon Musk, Tesla‘s CEO, stated on Wednesday evening that the majority of the electric vehicle manufacturer’s shareholders are voting in favor of his enormous pay package, believed to be worth up to $56 billion. Musk made the announcement on his social media platform X, before the vote officially concluded.
He indicated that both Tesla shareholder resolutions, including his pay package and a plan to relocate Tesla’s incorporation from New Castle, Delaware to Austin, Texas, are currently being approved by a significant margin.
While the official results of the vote have yet to be announced, Tesla’s annual shareholder meeting is scheduled for Thursday afternoon. Tesla has been actively encouraging its shareholders to approve Musk’s massive compensation package. The company stated on its annual meeting website that the future value at risk requires immediate shareholder action to safeguard both Tesla and their investment.
As part of its efforts, Tesla also initiated a sort of lottery, promising 15 randomly selected voting investors a personal tour of Tesla’s Austin plant, guided by Musk and vehicle designer Franz von Holzhausen.
In March 2018, shareholders broadly supported Musk’s compensation plan, but a Delaware judge overturned it in January. The vote this year is expected to be tighter than the 2018 vote, as influential advisory firms Investor Shareholder Services and Glass Lewis opposed the proposal. Both firms warned of potential stock dilution for Tesla shareholders if Musk receives the enormous stock grant, which could devalue their shares.</>
Both Tesla shareholder resolutions are currently passing by wide margins!
♥️♥️ Thanks for your support!! ♥️♥️ pic.twitter.com/udf56VGQdo
— Elon Musk (@elonmusk) June 13, 2024
In response to the Delaware ruling, Tesla reinstated the package in April, with chair Robyn Denholm urging investors to address this issue. In a letter to shareholders, Denholm stated that the company had generated more than $735 billion in value over the past six years.
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