Elon Musk, the multifaceted CEO of SpaceX, Tesla, and X, delivered a heartfelt thank you to Tesla’s shareholders post their endorsement of his contested $56bn pay deal. The approval is viewed as a crucial landmark in Tesla’s climb to prominence.
Despite contrary stance from certain investors, a majority of shareholders supported the audacious pay deal, the grandest ever offered to a CEO of a US public firm. The agreement ties Musk’s payout solely to company performance, emphasizing Tesla’s ambition to secure consistent growth and promote sustainable energy.
Musk, expressing his joy and appreciativeness, turned to Twitter. He tweeted, “Thanks for your support!! Both Tesla shareholder resolutions are currently passing by wide margins!”
The result will be publicized at the Annual General Meeting (AGM), where shareholders can reevaluate their decisions until the meeting’s onset. The event serves as a pivotal forum for all shareholders.
Back in 2018, Tesla’s board initially proposed the pay package, which Tesla successfully met definite revenue, profit, and stock price objectives ensuring its acceptance.
Musk’s landmark $56bn Tesla compensation deal
Although the journey was strenuous, Tesla’s innovative approach led to increased shareholder value amidst tough market conditions.
The package was not absent of objections though, with Delaware Judge Kathaleen McCormick deeming it inappropriate based on an investor’s claim. She ruled that Musk’s compensation was excessive, dismissing Tesla’s defense outright.
Tesla’s stock prices made a significant upswing to $189, a rise of 6.6%, as the pay deal was being concluded. This could offset their 28% loss since early 2021, indicated tech analyst Dan Ives. The final stock outcomes will be largely determined by the resolution at the AGM, suggesting a potential return to stability in Tesla’s market position. Yet, the magnitude of the situation makes it a close watch for investors and the market awaiting the AGM’s decision.
