Musk Secures Tesla Investor Support for Compensation Plan Extension

14 Jun, 2024

Musk Secures Tesla Investor Support for Compensation Plan Extension

Tesla CEO Elon Musk has reported strong shareholder support for a historic payout to himself and a proposal to relocate the company's legal headquarters to Texas. Musk revealed on social media that votes on these initiatives are currently passing comfortably among Tesla investors. The key proposal under scrutiny involves a compensation package initially valued at $56 billion when first agreed upon in 2018, aimed at incentivizing Musk based on Tesla's performance metrics.

Tesla shareholders have been actively voting on multiple resolutions, with an official announcement of the results expected following a meeting scheduled for Thursday. Despite requests for comment from BBC News, Tesla has not yet responded. Musk expressed gratitude to his supporters in a post on X (formerly Twitter).

However, legal uncertainties loom over the outcome. A court previously blocked the pay deal following a lawsuit by a small investor, citing procedural flaws and unfairness in the compensation determination process dominated by Musk. Tesla contested the decision, arguing it defied shareholder preference. Subsequently, the company proposed a re-vote and sought approval to relocate its incorporation outside Delaware.

The board maintains that Musk's leadership has been pivotal in achieving Tesla's ambitious goals, justifying the substantial payout as necessary to retain his commitment. Amidst the controversy, Musk engaged directly with shareholders, offering tours of Tesla's Texas factory to those who participated in the vote.