Elon Musk’s Record-Breaking Payout and Tesla’s HQ Move Gain Strong Shareholder Support.

By Caroline Ameh

Tesla’s CEO Elon Musk has announced that shareholder votes are overwhelmingly in favor of significant proposals, including a historic payout to Musk himself and a relocation of the company’s legal headquarters to Texas.

The votes, which took place recently, encompassed several critical decisions for Tesla shareholders. Among them was a vote to ratify a pay deal originally valued at $56 billion, initially agreed upon in 2018. Musk confirmed on social media platform X (formerly Twitter) that these proposals are “currently passing by wide margins.”

An official declaration of the voting results is expected at an upcoming Tesla meeting scheduled for Thursday. BBC News sought comment from Tesla but did not receive an immediate response.

Legal challenges have clouded the process, with experts questioning the outcome of a non-binding re-vote ordered after a Delaware judge invalidated the original compensation package earlier this year. The judge had ruled the package “unfair” and criticized the board’s decision-making process, which he claimed was heavily influenced by Musk.

In response to the court’s decision, Tesla sought shareholder approval once more and proposed relocating its legal base outside Delaware. The company argued that Musk’s leadership had been instrumental in achieving Tesla’s ambitious targets and that the payout was essential to ensure his continued commitment to the company.

Support for Musk and the proposed payout was evident among Tesla executives, who reiterated the CEO’s pivotal role in the company’s success via social media. Musk himself expressed gratitude to his supporters and even promised a personal tour of Tesla’s Texas factory to certain shareholders who backed him.

The controversial payout, estimated to be approximately 300 times more than the earnings of the highest-paid CEO in the US last year, had garnered significant support in a previous vote six years ago, with 73% of shareholders backing it at the time.

The outcome of the recent votes shows the enduring influence of Elon Musk within Tesla and the ongoing debate over executive compensation and corporate governance practices.