“Tesla’s two shareholder resolutions are currently adopted by a large majority! “, wrote Elon Musk on Wednesday evening in the United States, referring to the resolutions aimed at approving his compensation plan worth $56 billion and the transfer of Tesla’s registration from Delaware (east) to Texas (south). This statement came several hours before the official results of the vote, which effectively validated Musk’s mega-remuneration.
It is true that the car manufacturer campaigned in all directions until the last moment for its shareholders to adopt its boss’s enormous remuneration plan. “Time is running out,” posted Wednesday afternoon the site votetesla.com created for the occasion, while a countdown ticked off the seconds until 11:59 p.m. in Texas (04:49 GMT), the closing time of the poll. “Your vote is crucial for the future growth and success of Tesla and for the value of your investment,” insisted the electric vehicle specialist in a video explaining, with the help of his humanoid robot Optimus, how to vote.
To encourage votes, the group even put into play, by drawing lots, fifteen visits to the mega factory in Austin (Texas) with Elon Musk and Franz von Holzhausen, Tesla’s chief designer, as guides. In addition to the dedicated site and Optimus’ help, numerous messages have been published on X, as well as advertisements on the internet. Worthy of an electoral campaign.
Remuneration estimated at $56 billion
The group was counting on small investors to make the difference against large investors, several of whom announced in recent days that they were opposed to the remuneration package. These institutional investors did the same on March 21, 2018, when this financial package was submitted to shareholders at an extraordinary general meeting. The “yes” vote won by 73%, excluding the votes of Elon Musk and his brother Kimbal.
Elon Musk’s compensation is estimated at $56 billion and provides for stock distributions for ten years based on specific objectives. But a shareholder’s appeal before a Delaware court resulted in its annulment by a judge at the end of January. In mid-April, the board of directors undertook a maneuver to get it back on track by including it on the menu for Thursday’s ordinary general meeting.
“The board supports this compensation plan. We believed in it in 2018, asking Elon to pursue remarkable goals to grow the company,” the board argued at the time.
For supporters of this compensation plan, the risk was to see Elon Musk turn away from Tesla to devote more time to his other companies (SpaceX, X, xAI, Starlink, etc.). However, for many, Tesla is nothing without Elon Musk.
Conversely, opponents consider this remuneration “ridiculous” with a salary for Elon Musk “140 times the average salary of an employee”.