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Tesla shareholders are CEO Elon Musk Highest The largest pay package in corporate US history.
The day before Tesla’s official announcement, Musk said share The resolution approving his $56 billion compensation package and the resolution to move Tesla’s headquarters from Delaware to Texas both “passed by large margins,” the person said.
Musk posted a chart showing that both issues received more votes than were needed to “guarantee victory.”
Tesla stock Rapid increase After the news.
Both of Tesla’s shareholder resolutions have now passed by wide margins.
♥️♥️Thank you for your support!! ♥️♥️ pic.twitter.com/udf56VGQdo
— Elon Musk (@elonmusk) June 13, 2024
Shareholders are voting on the compensation package they first approved in 2015. 2018Delaware judge Flipped The figure was announced earlier this year and called an “unimaginable sum.”
Related: Tesla asks shareholders to approve record pay for CEO Musk
Even if shareholders again approve and Tesla moves its headquarters from Delaware to Texas, the legality of Musk’s compensation package remains unclear.
“Even if shareholders had approved the old package, it’s not clear that a Delaware court would give effect to that vote,” said Adam Badawi, a law professor at the University of California, Berkeley. Reuters.
Musk’s compensation package would far surpass those of the highest-paid CEOs in the U.S. The current top earner is Broadcom’s Hock E. Tan, with total compensation of $162 million, according to a June survey by The Associated Press. Apple’s Tim Cook makes about $63 million, according to the same list.
Tesla CEO Elon Musk. Photo by FREDERIC J. BROWN/AFP via Getty Images
Wednesday statement CalPERS analysts, who held 9.2 million Tesla shares as of June 7, noted that the proposed compensation package is nearly 140 times the annual compensation of other high-performing CEOs.
CalPERS CEO Marcy Frost said Musk’s compensation was “excessive” compared with peers and “highly dilutive” from a shareholder perspective.
CalPERS also highlighted that the compensation package exceeds Tesla’s net profit of $33.8 billion over the past four years (2020-2023).
Related: According to a new report, the highest paid CEOs in America are:
Still, for shareholders who voted in favor of the compensation package, it may not be about the money.
Tesla’s board chairman, Robin Denholm, wrote in a letter to shareholders last week that Musk’s compensation plan was “clearly not financially motivated” and was actually “designed to keep Elon interested and motivated.”
This letter is concern Ahead of the meeting, Musk warned he could leave Tesla if his compensation was not approved.
Related: Elon Musk’s proposed $56 billion compensation package is ‘clearly not about the money,’ Tesla chairman writes
Voting will close at 5:30 p.m. ET on Thursday, and the final tally will be formally announced at Tesla’s annual shareholder meeting, which begins at 4:30 p.m. ET on Thursday.