Elon Musk is about to achieve a record compensation package according to the latest shareholders’ votes announced by Tesla CEO himself on his X social network page.
Several proposals are currently being addressed, but two in particular have received attention.
The first is a vote on whether Mr. Musk should be awarded a $US56 billion (~$84 billion) pay package, after a similar package was struck down by a Delaware judge earlier this year.
In addition, Mr. Musk also wants to reincorporate Tesla from Delaware to Texas in response to the January ruling.
If current voting trends continue, both proposals appear likely to be approved based on data posted by Musk on Thursday.
As part of a social media post thanking his supporters, the Tesla CEO published a pair of charts tracking the total number of up/down votes for each proposal as of May 8.
The most recent figures for May 12 show ‘in favor’ votes winning on both ballots.
“Both Tesla shareholder resolutions are now passing by wide margins!” Mr. Musk posted on X.
“Thank you for your support!!”
The final results of the voting process will be announced as part of the shareholders’ meeting which will be livestreamed at 6:30am AEST on Friday, 13 June.
Mr. Musk’s huge salary in the form of stock options was first agreed in 2018, supported by 73% of shareholders at the time.
However, Chancellor Kathaleen McCormick of the Court of Chancery of Delaware intervened to block the deal in January this year after Tesla investor Richard Tornetta sued Mr. Musk for breaching shareholder trust by rewarding himself. “an immeasurable amount of money”.
The judge’s primary reason for revoking the compensation agreement was that Mr. Musk effectively controlled the board and compensation committee, that the agreement was unfair and unnecessary, and that shareholders had approved it. without knowing how the deal worked out.
The controversial performance-based bonus is “the largest potential compensation opportunity ever observed in the public markets,” according to court filings.
After the ruling in Delaware, Tesla drafted a new pay agreement for Mr. Musk and proposed reincorporating the company in Texas to overcome the legal hurdles that have hindered Mr. Musk up to this point.
Many large US corporations such as Tesla and Facebook are incorporated in Delaware due to its lax tax approach towards companies that do not do business in the state.
The current pay dispute follows a rare decline in Tesla sales in the first quarter of 2024, with the electric vehicle (EV) pioneer reporting its lowest quarterly sales since 2022.
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