Elon Musk

Shareholders Back Elon Musk’s $56 Billion Pay Package and Move to Texas

Tesla’s latest annual shareholder meeting in Austin brought some electrifying news. Despite a rocky road and a bit of courtroom drama, shareholders gave a thumbs-up to reapprove Elon Musk’s colossal compensation package and to relocate the company's incorporation from Delaware to Texas.

A Rocky Start in Delaware

Back in January, a Delaware judge put the brakes on Musk's pay package, deeming the process “deeply flawed” and overly influenced by Musk. The package, initially approved in 2018, was designed to reward Musk with options on around 300 million shares, valued at nearly $56 billion today, provided Tesla hit specific revenue and profit targets. Despite these hurdles, the shareholders in Texas showed overwhelming support for Musk’s leadership and vision.

Shareholder Skepticism

Not everyone was on board, though. Some large shareholders voted against the hefty compensation, arguing that it was too high and Musk was undeserving. Their concerns were partly fueled by Musk’s use of Tesla wealth to purchase Twitter for $44 billion in 2022 and the company’s stock taking a dive of over 25% this year.

Why Support Musk?

Supporters of Musk believe that the substantial compensation package is essential to keep Musk motivated and focused on driving Tesla forward. Musk’s charismatic and innovative leadership is seen as a critical asset to Tesla's success.

Musk's Reaction

Musk, never one to shy away from expressing his gratitude, thanked shareholders on social media platform X (formerly known as Twitter) even before the votes were tallied. After securing the win, he expressed his excitement with a typical Musk flair: “Hot Damn! I love you guys.”

What’s Next?

Although the shareholders’ approval marks a significant win for Musk, the story isn’t over. The Delaware judge who initially rescinded the package, or an appeals court, will likely still have a say in the final outcome.

Back to blog

Stories for Startups

Get Smarter Every Week - We Send You Cool Stories About People Making Money.

Stop anytime.