Tesla Shareholders Approve Largest Pay Package In U.S. History For Elon Musk

Tesla shareholders voted and approved the reincorporation of the car producer back in the state of Texas and a large pay package for the company’s Chief Executive Elon Musk valued at $45 billion last Thursday at Tesla’s annual meeting.

According to Financial Times, the pay package is the largest in history in the United States and was approved by 77% of the votes according to the filing. “Hot damn I love you guys,” said Musk to the audience of investors after the results were announced, “We are not just opening a new chapter for Tesla, we are starting a new book.”

The decision to move Tesla’s headquarters from Delaware to Texas was approved by 84% of the votes. It was considered after a Delaware judge ruled a limit of $55 billion for the compensation package—valued at $56 billion in January as Tesla shares value was higher— after stakeholders accused Musk of enrichment purposes, as reported by AP. After the judge’s decision months ago, Musk publicly expressed his discontent on X: “Never incorporate your company in the state of Delaware.” He also recommended Nevada or Texas as better locations.

The new votes give Musk a more optimistic outlook. The Governor of Texas, Gregg Abbott, showed his contentment with the recent stakeholders’ decision. “It was meant to be,” wrote Abbott on X, “Welcome to the Lone Star State.”

Tesla Shareholders approve corporation move to Texas.

It was meant to be.

Welcome to the Lone Star State. https://t.co/QRQuaQ7d0d

— Greg Abbott (@GregAbbott_TX) June 14, 2024

According to The Verge, the approved payday for Musk will “make him one of the highest-paid chief executives in modern history.” During the meeting, investors also approved Kimbal Musk—Elon Musk’s brother— and James Murdoch—former CEO of Twenty-First Century Fox as board members.

The positive results for Musk surprised some people as Musk had been recently involved in multiple conflicts like a lawsuit against OpenAI, and inappropriate behavior with female employees. Dropping the lawsuit and SpaceX’s success in landing a reusable rocket could have had a bigger impact for shareholders.