Tesla shareholders voting yes for Musk’s $56bln pay package, CEO says on X
Tesla shareholders are showing overwhelming support for CEO Elon Musk’s $56 billion pay package. The vote, currently underway, is expected to be announced at a meeting on Thursday, with Musk indicating on social media platform X that the proposal is receiving wide margins of approval.
The package in question is part of an incentive plan from 2018, which was initially voided by a Delaware judge. Still, shareholders are enthusiastic about backing Musk, with a mix of institutional and retail investors pushing the ‘yes’ result across the line.
The proposed pay package represents the largest in U.S. corporate history, highlighting the significance of Musk’s leadership at Tesla. While the company has faced challenges like slowing sales and profits, many shareholders believe in Musk’s innovative vision and his crucial role in Tesla’s success.
The board emphasizes that Musk’s achievements in meeting market value, revenue, and profitability targets warrant the substantial payout. They argue that the compensation is necessary to ensure Musk remains dedicated to Tesla, especially as he faces the prospect of exploring other ventures if the 2018 pay package is not approved.
Some large shareholders have expressed concerns about the excessive nature of the pay package, but Tesla has been actively rallying support from both retail and institutional investors. Executives have been leveraging social media and advertising campaigns to drum up backing for Musk’s compensation plan.
At the heart of the issue is not just the financial reward for Musk but a broader question about the future direction of Tesla under his leadership. The outcome of the vote will determine not only his compensation but also signal shareholder confidence in his ability to steer the company through the challenges ahead.
