Tesla Shareholders Approve $56 Billion Pay Package for Elon Musk and Move Legal Home to Texas

Tesla shareholders have voted to approve a massive $56 billion pay package for CEO Elon Musk and to relocate the company’s legal headquarters to Texas. Musk announced the news on social media platform X, stating that the proposals passed by wide margins.

The $56 billion pay package is part of an incentive plan for Musk that was originally approved in 2018, making it the largest in U.S. corporate history at the time. The plan was voided by a Delaware judge, leading to the current vote by shareholders to ratify it.

The results of the vote will be announced at an upcoming meeting, with a preliminary tally indicating strong support for Musk’s pay package from both institutional and retail investors. Shareholders still have the option to change their vote before the meeting.

In addition to the pay package, shareholders also voted on other proposals, including the relocation of Tesla’s legal headquarters to Texas and the re-election of board members Kimbal Musk and James Murdoch. Musk expressed gratitude to shareholders for their support in a tweet.

The vote on Musk’s pay package is seen as a test of confidence in his leadership, as Tesla has faced challenges such as slowing sales and profits. The board defended the package, stating that Musk had met ambitious targets for market value, revenue, and profitability.

The board also argued that the pay package is necessary to keep Musk committed to Tesla, as he has threatened to pursue other projects if he does not gain enough voting control. Ultimately, the approval of the pay package is crucial for Musk to remain dedicated to the company.