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Tesla CEO Elon Musk’s Compensation Plan Struck Down
In January 2024, a Delaware state court struck down Tesla CEO Elon Musk’s $46 billion compensation plan, which was deemed the biggest executive compensation package in U.S. history. The court’s decision raised questions about Musk’s future at the electric vehicle maker.
Shareholders Vote for Elon Musk’s Billions
Recently, Tesla shareholders voted on crucial measures that could shape the company’s future and Elon Musk’s leadership. The outcome of these votes will be pivotal for the direction of the company and its high-profile CEO.
Annual Shareholder Meeting
The annual shareholder meeting, held near Tesla’s factory in Austin, Texas, where the Cybertruck and Model Y are produced, saw a significant turnout. While many attended in person, those unable to make it could follow the event via a YouTube livestream.
The main focus of the meeting was the reapproval of Musk’s controversial pay package. If shareholders reject the proposal, there is speculation that Musk might consider leaving Tesla. Additionally, a vote on the reincorporation of Tesla in Texas, Musk’s proposed relocation after the Delaware court ruling, was also on the agenda.
On the eve of the meeting, Musk expressed gratitude to his supporters on social media, noting that both Tesla shareholder resolutions were passing by wide margins. This positive sentiment reflected in Tesla’s stock performance, which surged following Musk’s announcement.
Aside from Musk’s compensation, shareholders also voted on the reappointment of Kimbal Musk, Elon’s brother, and James Murdoch, former CEO of 21st Century Fox, to Tesla’s board. The Delaware judge who invalidated Musk’s compensation plan cited concerns about the approval process and Musk’s close ties to board members.
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