Payout approved

Musk wins vote for record $56 billion pay deal

Elon Musk
Elon Musk: fought to secure pay deal

Tesla chief executive Elon Musk has received shareholder backing to reinstate his $56 billion pay package — the biggest in American corporate history.

The proposal was ratified at the company’s annual meeting at its headquarters in Austin, Texas where the firm will relocate its legal base.

Speaking to shareholders after the vote was announced Mr Musk said: “Hot damn, I love you guys.”

The pay deal, largely made up of share bonuses, was agreed in 2018 when the company was a fraction of its current size.

A judge in Delaware, where Tesla is presently incorporated, vetoed the deal in January over concerns about the board’s transparency and independence when it was approved.

Tesla’s board has argued that Musk deserves the package because he hit all the targets on market value, revenue and profitability.

Wall Street saw yesterday’s vote as a signal of the board’s confidence in the founder’s leadership and the shares, which have lost about 60% of their 2021 peak value as Mr Musk seemed distracted by other businesses, ticked up nearly 3% or $5.18, to close at $182.47. 

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