Elon Musk's $56 Billion Pay Package is Approved By Shareholders

Chris Teague
by Chris Teague

If you’d like to earn $56 billion, a good place to start is to buy your way into an upstart EV manufacturer and then make as much noise as possible. Tesla CEO Elon Musk recently got an even bigger chunk of the company as shareholders approved his controversial pay package, which will make him one of the highest-paid corporate leaders in history.

The package has been litigated on and off for a few years now but was approved by shareholders earlier this week. Texas governor Greg Abbott congratulated Musk on the “achievement,” giving him props for “getting the pay you were promised and on your new incorporation in Texas.”

Musk’s brother, Kimbal Musk, thanked shareholders for the positive vote and noted that the company can “now focus on building a great business and accelerating the world towards alternative energy. The distractions from Delaware, violating shareholder rights and canceling arms length contracts, is over. Goodbye, Delaware. You will not be missed.”

While corporate boards should be independent and on top of governance issues, Tesla’s board placed ads to support Musk’s bid for a massive pay package. Many shareholders voted against the motion, but the prospect of the CEO leaving the company he has so famously become associated with was enough to push the vote into the “yes” column.

[Images: Tesla]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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7 of 62 comments
  • The Oracle The Oracle on Jun 16, 2024

    Going to see a lot of corporations migrating out of Delaware as the state of incorporation. Musk sets trends, he doesn’t follow them.

    • See 1 previous
    • MaintenanceCosts MaintenanceCosts on Jun 17, 2024

      Corporations incorporate in Delaware because the law is consistent and predictable and the courts understand corporate law issues. “Come to Texas where there are no rules and con artistry is A-OK” is not going to be a winning pitch to the kind of investors who have the real money.

  • Scott Scott on Jun 17, 2024

    "If you’d like to earn $56 billion, a good place to start is to buy your way into an upstart EV manufacturer and then make as much noise as possible"

    This completely unbiased and professional description of Musk's role in Tesla's success is why I respect Chris Teague and use him as a primary source. (s)

    • See 2 previous
    • EBFlex EBFlex on Jun 18, 2024

      “Wasn't there a part about revolutionizing multiple industries? I think that might be part of the equation.”

      Daily reminder everything TrollGhost says is a lie and he thinks diesel engines are zero emission.

  • VoGhost Fantastic work by Honda design. When I first saw the pictures, I thought "Is that a second gen Acura NSX?"
  • V16 2025 VW GLI...or 2025 Honda Civic SI? Same target audience, similar price points. Both are rays of sun in the gray world of SUV'S.
  • FreedMike Said this before and I'll say it again: I'm not that exercised about this whole "pay for a subscription" thing, as long as the deal's reasonable. And here's how you make it reasonable: offer it a monthly charge. Let's say that adaptive headlights are a $500 option on this vehicle, and the subscription is $15 a month, or $540 over a three year lease. So you try the feature for a month, and if you like it, you keep it; if you don't, then you discontinue it, like a Netflix subscription. In any case, you didn't get charged $500 up front the feature. That's not a bad deal.In my case, let's say VW offers an over the air chip reflash that gives me another 25 hp. The total price of the upgrade is $1,000 (which is what a reflash would cost you in the aftermarket). If they offered me a one time monthly subscription for $50 to try it out, I'd take it. In other words, maybe the news isn't all bad.
  • 2ACL A good car, but - at least in this configuration -not one that should command a premium. Its qualities just aren't as enduring as those of Honda's contemporary sports cars. For better or worse, this is a formula they remain able to replicate.
  • Jalop1991 I just read that Tesla's profits are WAY down "as the electric vehicle company has faced both more EV competition from established automakers and a slowing of overall EV sales growth." This Cadillac wouldn't help Tesla at all, but the slowing market of EV sales overall means this should be a halo/boutique car. Regardless, yes, they should make it.