Tesla Shareholders to Vote by June 12 on Elon Musk's $56 Billion Compensation Package with 90% Support

Jun 9, 2024, 02:26 AM

Tesla shareholders are preparing to vote on the re-approval of CEO Elon Musk's $56 billion compensation package, initially approved in 2018. The vote, which must be cast by June 12, has seen significant support from retail investors, with approximately 90% voting in favor. However, notable opposition comes from large shareholders like the Norwegian Government Pension Fund Global, which is the eighth largest shareholder in Tesla. The outcome of the vote could have significant financial implications, potentially preventing or triggering a massive accounting charge. Tesla employees and board members are actively campaigning for the package's approval, emphasizing Musk's vital role in the company's growth and success. The vote is seen as a crucial moment for Tesla, with many believing that Musk's leadership has been instrumental in the company's substantial market value increase of $735 billion over the past decade. Additionally, the vote includes Proposal Three to bring Tesla home to Texas and Proposal Four, a CEO performance award aligned with stockholder interests.