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As the climax of a nail-biting drama, replete with a full-fledged, well-oiled PR campaign conducted by Tesla in concert with Elon Musk, Tesla shareholders have, in all likelihood, approved the proposed $56 billion pay package for the company's CEO. In doing so, the shareholders appear to have taken into account the possibility of Musk's disassociation from the world's premier manufacturer of electric vehicles in the absence of his desired incentive plan.
To wit, as part of Tesla's annual general meeting (AGM), the shareholders were required to vote on two crucial proposals: to approve the company's reincorporation in Texas and ratify Elon Musk's $56 billion pay package.
Both Tesla shareholder resolutions are currently passing by wide margins!
♥️♥️ Thanks for your support!! ♥️♥️ pic.twitter.com/udf56VGQdo
— Elon Musk (@elonmusk) June 13, 2024
Well, just moments ago, Elon Musk posted on X that both measures were currently passing by "big margins."
For the benefit of those who might not be aware, Elon Musk had staked his commitment to Tesla as a bargaining chip to convince shareholders to approve his desired compensation package to replace the one recently voided by the Delaware Court of Chancery for being a product of sham negotiations between a beholden board and an increasingly assertive CEO.
Of course, in recent weeks, Elon Musk clearly outlined his desire for Tesla's board to structure his new compensation package such that it would allow him a pathway toward a 25 percent voting control over the EV manufacturer, threatening to "build products outside of Tesla" should the board not acquiesce to his demands.
As we noted in a dedicated post, Tesla's head of IR, Travis Axelrod, recently went so far as to paint Elon Musk's desire for greater voting control over Tesla as an expansive altruistic measure, "motivated primarily by the wish to protect humanity from the potentially negative implications of imprudent or improper use of Al technology."
Despite likely shareholder approval of the previously rescinded 2018 pay package for @elonmusk, the vote is likely to be ineffectual.
The Delaware court rescinded the 2018 compensation plan due to breach of fiduciary duty. The Board then proceeded to reinstate the original pay… https://t.co/hytT898Y9t
— Alex Lagetko (@GreyFoxTrot) June 13, 2024
Do note that Elon Musk's legal team had already assured the Delaware Court of Chancery that the CEO of Tesla would not use a change in the company's state of incorporation to try to undo the court's ruling, terming the possibility a "rank speculation." Musk's legal team had also conceded that the Delaware Chancery Court would retain jurisdiction over his ongoing pay dispute. Therefore, despite today's vote, Musk will likely need to appeal the court's ruling to win a comprehensive reprieve.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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