Musk says Tesla shareholder vote for US$56bil pay package passing by wide margins


FILE PHOTO: Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X looks on during the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 6, 2024. REUTERS/David Swanson/File Photo

TESLA shareholder resolutions on Chief Executive Elon Musk's pay package and its move to shift legal headquarters to Texas are currently passing by wide margins, Musk said in a post on social media platform X on Wednesday.

Shareholders of electric-car maker Tesla are voting on a proposal to ratify CEO Musk's 2018 incentive package, valued at up to $56 billion at the time. The result will be announced at a meeting on June 13.

A person familiar with the preliminary tally, said Musk was correct on both counts.

Tesla shareholders will also vote on other proposals including the move of Tesla's legal headquarters from Delaware to Texas, as well as the re-election of two board members: Musk's brother Kimbal Musk, and James Murdoch.

Musk referred to the resolutions on his pay package and the move in his tweet, thanking shareholders for their support.

Some investors viewed the vote on Musk's pay as a test of confidence in his leadership. While he is undoubtedly Tesla's driving force, and is credited with much of its success, the company has seen slowing sales and profits in the last few years.

The board said the world's richest person deserves the package, because he hit all the ambitious targets on market value, revenue and profitability.

The pay package is also needed to keep Musk devoted to Tesla, the board said, even though the Delaware judge said the 2018 pay plan failed to make sure that Musk committed a substantial amount of time to Tesla.

Musk has threatened to build AI and robotics products outside Tesla, if he fails to gain enough voting control, which requires the 2018 pay package to be approved. - Reuters

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