Tesla shareholders are voting to approve a $56 billion pay package for Elon Musk and to move the electric vehicle maker’s legal home to Texas, Musk said on social media platform X on Wednesday, adding that passage was by wide margins.
Tesla shareholders are voting to approve a $56 billion pay package for Elon Musk and to move the electric vehicle maker’s legal home to Texas, Musk said on social media platform X on Wednesday, adding that passage was by wide margins.
A yes vote gives the electric carmaker more ammunition in a Delaware court, where a judge voided the 2018 pay package plan, which at the time was the largest in US corporate history, saying the board was “beholden” to CEO Musk.
It also marks a massive win for Musk and the board, who have put their credibility on the line to gain shareholder approval, despite opposition from major investors Glass Lewis and Institutional Shareholder Services (ISS).
“Thanks for your support!!” Musk said in his post on X.
The result will be announced at a meeting at Tesla’s headquarters in Texas on Thursday at 4:30 pm ET.
A person familiar with the preliminary voting tally said a combination of big institutional investors and retail investors got the “yes” result over the line.
Shareholders, however, are allowed to change their vote up to the start of the annual meeting.
Tesla shareholders also cast ballots on other proposals including the move of its legal headquarters from Delaware to Texas, as well as the re-election of two board members: Musk’s brother Kimbal Musk and James Murdoch.REFERENDUM
Some investors viewed the vote on Musk’s pay as a test of confidence in his leadership.
