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Tesla’s CEO Elon Musk Unpaid Since 2018
Tesla CEO Elon Musk has not received payment for his services since 2018, according to the company. The request comes amidst a call to investors to ratify Musk’s $56 billion pay package, which was previously rejected by a Delaware judge earlier this year. The package, considered the largest executive compensation plan in history, briefly propelled Musk to the title of the world’s richest person.
Legal Battle Over Compensation Package
Delaware Judge Kathaleen McCormick ruled against Musk and Tesla’s board in a shareholder lawsuit, concluding that the process leading to the approval of Musk’s compensation plan was flawed. Despite this decision, Tesla maintains that the plan was legitimate, citing a 73% approval rate among shareholders in 2018. Musk, with a net worth of $184.8 billion according to Forbes, has reportedly forgone any payment for his work at Tesla since 2018.
Proposals for Shareholder Vote
Shareholders are set to vote on the proposed pay package at Tesla’s upcoming annual meeting on June 13. Additionally, investors will weigh in on whether Tesla should reincorporate its business in Texas, where the company is headquartered and operates a major factory focusing on the production of Cybertruck electric pickups and Model Y SUVs.
In response to the legal setback in Delaware, Musk has taken steps to relocate Tesla’s incorporation to Texas, following SpaceX’s lead which filed for the same move earlier this year. Tesla’s board chairman, Robyn Denholm, expressed strong support for shifting the company’s base to Texas, citing overwhelming support from shareholders for the move.
Market Reaction and Future Outlook
Tesla’s stock experienced a slight uptick in pre-market trading following the announcement. However, the company has seen a significant decline of nearly 37% in stock value since the beginning of 2024, positioning it as one of the poorest performers in the S&P 500. The situation remains dynamic, and updates will be provided as the story unfolds.
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