Tesla shareholders this week voted in favor of reinstating CEO Elon Musk’s monumental $56 billion compensation package. The decision, announced at Tesla’s annual meeting in Austin, Texas, reflects robust investor confidence in Musk’s leadership despite earlier legal challenges.
“I just want to start off by saying: Hot damn, I love you guys,” Musk said as he leapt around on the stage Thursday. “I think we’re not just opening a new chapter for Tesla, we’re starting a new book.”
Earlier this year, a Delaware judge nullified the original package, raising questions about its legitimacy. However, the latest vote overturns that decision, with Tesla’s corporate secretary Brandon Ehrhart confirming strong investor backing for the compensation plan.
Musk’s billion-dollar dance
Following the announcement, Musk was seen celebrating on stage, a video of which he shared on his social media platform, X. The clip shows the 52-year-old billionaire entering the stage with palpable excitement, pumping his fists, jumping, and dancing while an enthusiastic crowd cheered him on.
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One social media user captured the sentiment of many with their post: “Elon Musk dance is [fire]. Tesla shareholders have spoken.” The video quickly went viral, with many dubbing it the “billion-dollar dance.”
Public reaction to the compensation package and Musk’s celebratory dance has been mixed. While some praised Musk, calling him “a good human” who “earned” his compensation, others linked the event to Musk’s financial needs for running Twitter.
“Elon’s happy he got a bit of cash to keep paying for Twitter,” quipped one user. Another drew a pop culture parallel, saying, “Elon’s got the moves like Jagger. Tesla shareholders know he’s the real deal.”
The reinstated compensation plan, originally approved by Tesla’s board and shareholders six years ago, is performance-based. It aims to reward Musk for achieving specific milestones, ensuring his continued commitment to Tesla’s ambitious goals.
Despite the shareholder vote, the package remains entangled in legal battles in the Delaware Chancery Court and the Supreme Court. Legal experts suggest that the outcome will depend on whether Tesla sufficiently informed shareholders about the details of the compensation plan.
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Tesla faces significant challenges ahead. While shareholders have shown their support, Musk’s compensation plan’s fate in court remains uncertain. Additionally, the company grapples with declining sales and profit margins amidst slowing global demand for electric vehicles.
At the meeting, Musk reaffirmed his dedication to Tesla, stating, “It’s not actually cash, and I can’t cut and run, nor would I want to”. He also hinted at the importance of his involvement, mentioning his interest in maintaining a 25% stake in Tesla to prevent him from diverting his focus to artificial intelligence projects.
According to The Times of India, Tesla most recently valued the package at USD 44.9 billion in an April regulatory filing. Previously, it was as high as USD 56 billion, but its value has fallen with Tesla’s stock, which has decreased about 25% this year.
