Following a Delaware court’s invalidation of CEO Elon Musk’s $56 billion compensation package, a company spokesman stated that Tesla shareholders voted in favour of it. According to the early voting results at Tesla’s annual meeting in Austin, Texas, corporate secretary Brandon Ehrhart stated that investors supported the idea.
Elon Musk then did not waste any time in logging on to social media platform X. He wrote, “Hot damn, I love you guys. I just want to start off by saying that.”
Both Tesla shareholder resolutions are currently passing by wide margins!
♥️♥️ Thanks for your support!! ♥️♥️ pic.twitter.com/udf56VGQdo
— Elon Musk (@elonmusk) June 13, 2024
Investors first accepted the compensation package in 2018, but in January 2024 a Delaware court overturned it. Tesla then started a push to bring it back. Tesla shares rose 0.7 per cent in after-hours trading and stock gained 2.9 percent in Thursday’s session after Elon Musk posted on his social media platform X (formerly Twitter) that investors were going to back his pay plan by a ‘wider margin.’
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Is Elon Musk Getting The $56 Billion Compensation?
No, Elon Musk’s appeal of the Delaware verdict is strengthened by the victory, but he still needs court approval to receive the payout. However, the approval of the remuneration package probably guarantees that Elon Musk will continue to lead Tesla.
Musk had previously dropped hints that he might resign from the company if he did not receive a sizable enough stake. Elon Musk owned over 20.5 percent of Tesla stock by the end of 2023.
Supporters of Elon Musk, such as billionaire investor Ron Baron, unwaveringly backed the CEO. Ron Baron stated in a letter to the public, “Shareholders ought to consider themselves if Elon Musk is better for Tesla or not. Our response at Baron Capital is loud, clear, and unequivocal: Elon makes Tesla run better. Elon is Tesla.”
