Tesla Shareholders to Decide on Elon Musk’s $56 Billion Pay Package




Elon Musk in a suit stands confidently before a Tesla logo, with shareholders in the background.

Tesla shareholders are set to vote on whether to reapprove a compensation package for CEO Elon Musk, valued at approximately $56 billion. The decision comes after a Delaware judge voided the previous approval, and the outcome could significantly impact Tesla’s future and Musk’s role within the company.

Key Takeaways

  • Shareholders to vote on Musk’s $56 billion pay package.
  • The package was previously approved in 2018 but voided by a Delaware judge.
  • The vote requires a simple majority to pass, excluding Musk and his brother.
  • The outcome could affect Tesla’s stock and Musk’s involvement in the company.


In 2018, Tesla shareholders approved a compensation package for Elon Musk, which was valued at up to $56 billion. The package was designed to reward Musk with stock options if Tesla met specific market capitalization and operational targets by 2028. These targets included increasing Tesla’s market value from $59 billion to $650 billion and achieving revenue of $175 billion or adjusted EBITDA of $14 billion.

However, a Delaware judge voided the approval in early 2024, citing issues with the process and disclosure. As a result, Tesla has called for a new vote to reapprove the package.

The Vote

The vote on Musk’s compensation package will take place ahead of Tesla’s annual shareholder meeting on June 13. Shareholders can cast their votes until the end of June 12 or during the virtual meeting. The vote requires a simple majority to pass, excluding the votes of Musk and his brother, Kimbal Musk.

Support and Opposition

The compensation package has garnered mixed reactions from various stakeholders. While some shareholders and proxy advisory firms support the package, others, including Norway’s sovereign wealth fund and several large institutional investors, have expressed concerns about its size and structure.


  • T. Rowe Price: Believes the package aligns with investor interests.
  • Retail Investors: Tend to favor management and have shown support for Musk’s leadership.


  • Norwegian Wealth Fund: Concerned about the size and structure of the package.
  • Glass Lewis and ISS: Recommended voting against the package, citing it as excessive.

Potential Impact

The outcome of the vote could have significant implications for Tesla and its stock. If the package is approved, Musk’s ownership stake in Tesla could increase from 12.9% to 22.4%, giving him more control over the company. However, if the package is voted down, it could lead to a decline in Tesla’s stock price and potentially reduce Musk’s involvement in the company.

Legal and Strategic Considerations

Even if shareholders approve the package, it may not reverse the judge’s decision to void the 2018 approval. Legal experts suggest that the vote has more symbolic weight than legal power. Tesla hopes that a favorable vote could strengthen its position in any future legal proceedings.

Additional Votes

In addition to the compensation package, Tesla shareholders will also vote on whether to move the company’s incorporation from Delaware to Texas. This move is seen as a strategic decision to align Tesla’s legal home with its business operations, which are increasingly centered in Texas.


The upcoming vote on Elon Musk’s $56 billion pay package is a pivotal moment for Tesla and its shareholders. The decision will not only impact Musk’s compensation but also his influence over the company and its future direction. Shareholders are encouraged to participate in the vote to shape the future of Tesla.


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