Elon Musk says Tesla shareholders will vote to approve pay deal

13 June 2024, 10:04

Elon Musk, CEO of Tesla and SpaceX (PA)
AI safety summit. Picture: PA

Shareholders are voting on a 56 billion dollar pay package for the billionaire chief executive.

Elon Musk has claimed that Tesla shareholder votes on a record-breaking payout to the billionaire boss and a plan to move the firm’s legal headquarters to Texas are “currently passing by wide margins”.

Shareholders in the car company have been voting on a number of proposals, including one that could give the multi-billionaire chief executive a record pay deal worth around 56 billion dollars (£43.8 billion), which was first agreed in 2018.

A decision on the vote is expected later on Thursday.

Earlier this year, a judge in the US state of Delaware, where Tesla is incorporated, voided the pay deal after an investor sued on the issue, with the judge ruling that the sum was unfair and the process to award it to Mr Musk – which was made by a board controlled by the entrepreneur – was described as “deeply flawed”.

Tesla called that decision “inconsistent with the will of the stockholders” and submitted the deal to another vote, alongside a measure to consider moving the company’s legal headquarters outside of Delaware.

The car maker has argued that Mr Musk deserves the pay package because he is crucial to the company’s success and has helped the firm achieve ambitious targets through his leadership, and that it is a necessary deal to ensure he remains committed to the company.

Mr Musk’s other businesses include SpaceX and social media platform, X, formerly known as Twitter.

Even if successful with the vote, Mr Musk could still face legal hurdles over the pay package, with some legal experts noting that it was unclear whether the Delaware court which blocked the deal would accept the result of the new vote, because it is not legally binding.

By Press Association

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