Tesla investors back Musk's $48B payday

Musk's package is "worth an estimated 300 times what the top-earning boss in the U.S. made last year"

(Image credit: Apu Gomes / Getty Images)

published 14 June 2024

What happened

Tesla shareholders approved a controversial payout for CEO Elon Musk, the company announced Thursday at its annual meeting in Austin. The 2018 compensation package, worth about $48 billion at Tesla's current share price, was blocked by a Delaware court in January. Shareholders also approved a proposal to reincorporate Tesla in Texas, from Delaware.

Who said what

"Hot damn, I love you guys," Musk told shareholders after the results were announced. Approval of the massive pay package was a relief for investors who view Musk as a "genius who has revolutionized the auto industry" and feared "rejection would prompt him to spend less time managing Tesla or even quit," The New York Times said.

The package would give Musk 303 million shares, raising his Tesla stake to 20.5% from 13%. It's "worth an estimated 300 times what the top-earning boss in the U.S. made last year," the BBC said.

What next?

The shareholder vote is nonbinding and may not persuade the Delaware judge to revise her ruling. Lawyers for Tesla and shareholders who opposed the payout are "expected to meet in early July with the judge," The Wall Street Journal said.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.