Tesla shareholders have approved Elon Musk’s ‘unfathomable’ pay package

Tesla shareholders have once again approved Elon Musk’s multi-billion dollar pay package, despite a previous ruling from the Delaware court. The decision was made during the electric car maker’s annual shareholder meeting, where stockholders agreed to reinstate Musk’s pay package, which is currently valued at approximately $48 billion, as reported by .

Judge Kathaleen McCormick of Delaware’s Chancery Court had previously criticized Musk’s pay, originally valued at $56 billion in 2018, as an “unfathomable sum.” In response, Musk had threatened to relocate Tesla’s state of incorporation to Texas. At the shareholder meeting, shareholders officially supported the move.

While the approval of Musk’s compensation does not automatically reinstate his high pay, Tesla is likely to appeal the court’s ruling and cite the recent shareholder vote as evidence of approval from stockholders, according to Bloomberg.

Following the vote, Musk expressed his satisfaction, stating, “I just want to start off by saying, hot damn. I love you guys,” during the shareholder meeting. He reassured investors that the reinstatement of his pay would not impact his dedication to Tesla in the short term, highlighting that he is required to hold Tesla stock for five years and cannot easily divest his shares.