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Tesla shareholders have voted to reapprove CEO Elon Musk’s colossal pay package, despite a Delaware court judge voiding it earlier this year.that the vote, widely regarded as a referendum on Musk’s leadership during a tumultuous period for the electric vehicle giant, saw investors also approve the relocation of Tesla’s legal home from Delaware to Texas and the reappointment of board members James Murdoch and Kimbal Musk, Elon’s brother.
Despite these obstacles, Tesla shareholders demonstrated their unwavering support for Musk by approving a compensation package that solidifies his position as one of the highest-paid chief executives in modern history. Upon taking the stage with his arms raised in victory, Musk exclaimed, “I just want to start off by saying, hot damn, I love you guys.”
Tesla’s unique shareholder composition as a cult stock, which includes a higher proportion of retail investors compared to large institutional investors, played a significant role in the vote’s outcome. While top proxy advisory firms recommended voting against the proposal, Tesla’s retail shareholders remained steadfast in their support.by Musk at SpaceX and a sexual harassment lawsuit by fired employees, failed to sway the vote.
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