Tesla boss Elon Musk is on the brink of securing a record-breaking payout as shareholder votes on the matter are reportedly passing by wide margins. The multi-billionaire’s $56 billion pay deal, initially agreed upon in 2018, is up for confirmation, along with a proposal to move the firm’s legal headquarters to Texas.
The official announcement of the vote results is expected to be made at a meeting on Thursday, with Tesla shareholders having the final say on the matter. While the company has not yet responded to requests for comments, Musk took to social media platform X (formerly known as Twitter) to express his gratitude to supporters.
However, legal experts are questioning the validity of the re-vote, as a court had previously blocked the compensation deal following a lawsuit from a small investor earlier this year. The judge deemed the sum “unfair” and criticized the process for determining the package, which was heavily influenced by Musk.
Despite the legal hurdles, Tesla’s board continues to stand by Musk, arguing that he deserves the hefty payout due to the company’s success under his leadership. Executives have also voiced their support for the package, emphasizing Musk’s importance to Tesla’s achievements.
In a bid to rally support, Musk has even offered a personal tour of Tesla’s factory in Texas to shareholders who cast their votes. The package, estimated to be 300 times more than the top-earning boss in the US made last year, had previously garnered 73% approval from shareholders six years ago.
As the fate of Musk’s payout hangs in the balance, all eyes are on the outcome of the shareholder votes and the potential implications for Tesla’s future.
