Elon Musk successfully reclaimed his $44.9 billion pay package at Tesla as shareholders overwhelmingly supported the restoration, showcasing confidence in his leadership. Following a legal setback in Delaware where the original deal was invalidated due to concerns about board independence, Elon Musk expressed gratitude to shareholders, emphasizing their crucial role in Tesla’s journey.
Although the shareholder vote signals support for Musk, it doesn’t guarantee the immediate receipt of the pay package. However, it could strengthen Tesla’s position in challenging the Delaware ruling. The original compensation, once valued at $56 billion, has depreciated by about a quarter alongside Tesla’s stock decline.
Judge’s rule out on Elon’s Tesla
In her ruling, Judge Kathaleen McCormick criticized the pay package as excessive, questioning its necessity for Tesla’s growth under Musk’s leadership. Despite controversies and concerns about his commitments to other ventures like SpaceX and X, Musk remains Tesla’s driving force, not drawing a salary but incentivized by stock rewards tied to the company’s performance.
Tesla’s shareholders also approved the relocation of the company’s incorporation to Texas and reappointed Kimbal Musk and James Murdoch to its board. Notably, some large institutional investors, including Norges Bank Investment Management, opposed the pay package restoration.
