Tesla shareholders approved the restoration of CEO Elon Musk’s record $44.9 billion compensation package on Thursday, which a Delaware judge had dismissed a few months ago. This vote represents a strong show of confidence in his leadership of the electric vehicle company.
However, this favorable vote does not necessarily mean Musk will receive the stock-based compensation in the near future. The package may remain tied up in the Delaware Court of Chancery and the Supreme Court for months as Tesla attempts to overturn the Delaware judge’s decision.
Musk has raised questions about his future with Tesla this year, stating on X, the social media platform he owns, that he wants a 25% stake in the company to prevent him from taking his AI development to another firm. He claims this larger stake is necessary to control the use of AI.
Tesla has also faced challenges due to a decline in sales and profit margins as global demand for electric vehicles slows down.
At the company’s annual meeting held on Thursday in Austin, Texas, Musk reassured shareholders that he will remain with the company, telling them he won’t be able to sell any shares from the compensation package for five years.
“It’s not cash per se, and I can’t just run away, nor would I want to,” he stated.
The company did not immediately disclose the voting totals for Musk’s compensation package but noted that shareholders approved the compensation plan, which had initially received approval from the board of directors and shareholders six years ago.
In a regulatory filing submitted last April, Tesla valued the package at $44.9 billion. At one point, its value had reached $56 billion, but it has fallen in line with Tesla’s stock, which has dropped approximately 25% so far this year.
