Austen, Texas, Wednesday, June 19, 2024 – Tesla shareholders voted in favor of a record-breaking $44.9 billion pay package for CEO Elon Musk at the company’s annual meeting on Thursday, June 13. 1
The controversial compensation plan, which was first approved by Tesla’s board in 2018, ties Musk’s financial rewards to achieving ambitious performance targets for the electric car company.
These targets include reaching specific milestones in revenue, stock price, and operational growth. Prior to the shareholder vote, the pay package had been blocked by a Delaware judge in January 2024.
The judge raised concerns about the lack of shareholder oversight in the plan’s approval by the board. However, Tesla appealed the decision and held a new vote, this time with shareholder approval secured.
“We’re not just opening a new chapter for Tesla, we’re starting a new book,” Musk said in a statement following the vote.2
While some investors have applauded the plan for motivating Musk to drive Tesla’s growth, others have criticized its reliance on stock price manipulation and a lack of guaranteed base salary.
The vote outcome underscores Musk’s continued influence over Tesla shareholders, despite recent controversies surrounding his leadership.
The record-breaking nature of the pay package is likely to reignite discussions about executive compensation in the tech industry.
- www.theguardian.com: https://www.theguardian.com/business/article/2024/jun/13/tesla-shareholders-approve-elon-musk-pay[↩]
- https://www.youtube.com/watch?v=JXRkLz9H440[↩]
