Elon Musk thanks investors for backing $56 billion Tesla pay package, Texas governor welcomes him to ‘no tax state’

Showing support for Tesla CEO Elon Musk, a majority of the EV automaker’s investors voted in favour of the tech billionaire’s historic $56 billion pay package. They also voted in support of the company’s relocation of domicile from Delaware to Texas.

Known for his active posts on social media, especially self-owned platform X (formerly known as Twitter), Musk celebrated the development late on June 13 and thanked shareholders for their support.

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Approval Marks a Milestone for Tesla

The approval of this significant pay deal is a major milestone in US corporate history. It aims to secure Musk‘s long-term commitment to Tesla amidst ongoing legal challenges. The vote comes amid shareholder concerns and legal disputes surrounding the initial 2018 pay package, which was recently invalidated by a Delaware court. This decision prompted Tesla’s board to seek reinforcement through shareholder endorsement.

A preliminary voting tally indicated strong support from a coalition of institutional investors and retail shareholders. This positions Tesla to potentially navigate legal hurdles and reinforce its leadership stability under Musk. The final outcome of the vote will be announced at Tesla’s headquarters in Texas later today.

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Opposition from Major Proxy Firms

Despite opposition from major proxy firms such as Glass Lewis and Institutional Shareholder Services (ISS), and significant institutional investors like Norway’s sovereign wealth fund and prominent US pension funds, Musk’s persuasive influence over retail investors appears to have swayed the balance in favour of the proposed package.

Beyond the pay package, shareholders also voted on pivotal corporate decisions, including the relocation of Tesla’s legal headquarters and the re-election of board members. This underscores broader strategic shifts within the company.

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Here’s how the Internet Reacted

Texas Governor Greg Abbott welcomed Musk to the state that has “neither a personal nor a corporate tax”.

Musk’s mother also expressed her thanks to investors.

Investors took to X to congratulate Musk and got responses from the billionaire expressing gratitude.

There were also the usual memes and criticisms.

(With inputs from Agencies)