'Thanks For Your Support': Elon Musk Says Tesla Shareholders Voting For His USD 56 Billion Pay Package

Tech billionaire Elon Musk on Thursday said that Tesla shareholders are voting to approve his $56 billion pay package and to move the electric vehicle maker’s legal home to Texas. “Thanks for your support!!” Musk said in his post on X.

The resounding endorsement by shareholders of unprecedented remuneration terms in US corporate history may alleviate worries about Musk’s tenure at Tesla, while bolstering the company’s position in challenging a court ruling invalidating the pay package.

Musk remains poised for a protracted legal struggle to sway the Delaware judge’s perception of the Tesla board’s alleged dependency on him, potentially encountering further litigation arising from the recent vote.  The result will be announced at a meeting at Tesla’s headquarters in Texas at 4:30 pm (local time) on Thursday.

Earlier, firms like Glass Lewis and Institutional Shareholder Services (ISS) had urged shareholders to reject the pay package, and large investors including Norway’s sovereign wealth fund had said they would vote against it. 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.

Texas Governor Greg Abbott congratulated Musk after his post, saying on X: “Welcome to a state that has neither a personal nor a corporate income tax.” Some investors viewed the vote on Musk’s pay as a test of confidence in his leadership. While he is undoubtedly Tesla’s driving force, and is credited with much of its success, the company has recently seen slowing sales and profits.

Market analysts say Musk’s outspokenness and knack for creating controversy have also weighed on Tesla’s reputation and sales. He now runs six firms, including rocket-builder SpaceX, social media giant X – formerly Twitter – and the artificial intelligence firm xAI, which Musk created in 2023.

Company executives have posted messages on X, saying Musk is critical to Tesla’s success. Tesla has run social media ads, and Musk has promised a personal tour of Tesla’s factory in Texas to some shareholders who cast votes. The board said the world’s richest person deserves the package, because he hit all the ambitious targets on market value, revenue and profitability.

(With agency inputs)