Tesla shareholders approve Musk’s $84b pay package
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The news: Tesla shareholders have approved CEO Elon Musk's multi-billion dollar pay package, along with a proposal to move the company's legal home to Texas from Delaware.
The numbers: While shareholders backed Musk’s USD56 billion ($84 billion) pay package, Tesla did not disclose the voting tallies. However, Musk said on his social media platform X that the resolutions were set to pass by "wide margins".
Shares in the electric vehicle maker closed nearly 3% higher in New York ahead of the vote.
The context: Tesla’s board has been drumming up support for Musk's pay package, especially from retail investors, who make up an unusually high percentage of its ownership base but who often do not vote.
The proposal passed despite opposition from some large institutional investors and proxy firms. Musk also faces a long legal fight to convince a Delaware judge who invalidated the package in January, saying the plan was proposed by a conflicted board with close personal and financial ties to its top executive. Musk threatened to build AI and robotics products outside of Tesla if he failed to gain enough voting control, which essentially required the 2018 pay package to be approved.
The decision comes at a time when Tesla's share price has dropped about 60% from its 2021 peak as EV sales have slowed and Musk's attention has wavered between Tesla and other companies he runs.
The source: Reuters
