Tesla Shareholders to Vote Thursday on Reinstating Elon Musk's $56 Billion Pay Package

Jun 11, 2024, 09:31 PM

Tesla shareholders are set to vote on Thursday on whether to reinstate CEO Elon Musk's $56 billion pay package, which was previously nullified by a Delaware judge in January. The vote, while largely symbolic, has sparked significant debate among major shareholders. Bill Gates' investment firm supports the package, describing it as ambitious but beneficial for shareholders. Conversely, CalSTRS and other institutional investors argue that Musk's compensation, which is 140 times the average worker pay, is excessive, with CalSTRS CIO Chris Ailman criticizing it as 'absurd and excessive.' Norway's Sovereign wealth fund also opposes the package. The outcome of the vote remains uncertain, with some predicting that Tesla shares could fall by 5% if the package is rejected. Hedge fund manager Brad Gerstner, who holds nearly 600,000 shares, has voted in favor of the package. The vote is seen as a critical test of executive pay limits and shareholder influence over corporate governance. About half of Tesla's shareholders are retail investors, which could influence the final outcome. Billionaire investor David Sacks has also weighed in on the matter.