Elon Musk secured a victory on Thursday as Tesla shareholders overwhelmingly voted to reapprove his pay package, worth $56 billion paid in stock options, during the company’s annual meeting.
It is the largest incentive package in US corporate history.
The victory follows a January ruling by a Delaware judge who invalidated Musk’s 2018 compensation plan, citing procedural flaws and the billionaire’s close ties with Tesla’s board members. The judge also criticized the EV maker for insufficiently disclosing details of the deal to shareholders.
While yesterday’s shareholder vote doesn’t override a Delaware judge’s earlier ruling against the package, it gives Tesla leverage to challenge the decision.
Additionally, shareholders also approved relocating Tesla’s legal base from Delaware to Texas, where the company has substantial operations.
Musk celebrated the votes by highlighting Tesla’s future opportunities in self-driving vehicles and robotics, stating, “We’re starting a new book.”
Despite the win, Tesla has had a challenging year. Its stock fell approximately 27% in 2024, and institutional investors such as Nordea Asset Management and the California Public Employees’ Retirement System have opposed Musk’s incentive structure.