Tesla Shareholders Vote on Elon Musk's Massive Pay Package

Tesla shareholders have approved a massive compensation package for CEO Elon Musk, worth up to $56 billion. The package was originally approved in 2018 but was struck down by a Delaware court in January 2024. Despite this, investors voted in favor of the plan again on Thursday, with preliminary results showing that they backed the proposal. However, legal experts note that this vote does not automatically mean Musk will receive the payout, as the lawsuit is still ongoing in a Delaware court.

Tesla's stock surged after the company announced that shareholders are voting to approve Elon Musk's 2018 pay package by a wide margin. The news comes after a Delaware judge threw out the package, worth $44.9 billion, in January due to concerns it was unfair. According to Musk, preliminary results show that shareholders have provided enough votes to re-approve his compensation deal. A separate proposal to transfer Tesla's state of incorporation from Delaware to Texas also appears to be gaining traction. The vote is expected to be finalized later on Thursday at a meeting where the company will make an official announcement.