In a clear vote of support for his leadership, shareholders at Tesla Inc. decided to reinstate Elon Musk’s $44.9 billion remuneration plan.
Although Tesla stock was up about 7% in early trade, an official word won’t be released until later on Thursday, despite Musk posting late Wednesday night that the votes were heading towards passage of his pay plan.
He wrote in a post on X, “Both Tesla shareholder resolutions are currently passing by wide margins! Thanks for your support!!”
Newsng gathered that the fact that the vote was in favour does not guarantee that Musk will receive the full equity compensation soon. As Tesla attempts to overcome the Delaware judge’s refusal, the package is probably going to be stuck in the Delaware Chancery Court and Supreme Court for months.
In 2018, Tesla shareholders initially accepted the $56 billion compensation plan. Instead of a salary or incentive, the compensation plan delivers benefits in the form of stock options, which are given out depending on the possibility that Tesla’s market value would increase to $650 billion over the course of the ten years that follow 2018.
However, Musk gave investors comfort at the company’s annual meeting on Thursday in Austin, Texas, by telling them he won’t be selling any stock as part of the pay package for the next five years.
“It’s not actually cash, and I can’t cut and run, nor would I want to,” he said.
“I just want to start off by saying, hot damn, I love you guys!” a jubilant Musk said as he appeared on stage after the vote.
Musk’s compensation package was worth over $56 billion when Tesla’s stock price peaked in late 2021, but it has since decreased in value by roughly 25% on pace with the company’s stock price slump.
We earlier reported that Elon Musk has made a threat to ban Apple products from being used at his firms if the tech giant included OpenAI into the operating system.
