Tesla’s shareholders have approved Elon Musk’s $56 billion compensation plan and the transfer of the company’s registration from Delaware to Texas, according to an announcement made by Musk on Wednesday evening. The resolutions were adopted by a large majority, with the official results validating Musk’s mega-remuneration plan.
Tesla campaigned extensively to encourage shareholders to approve Musk’s compensation plan. The company created a website, votetesla.com, with a countdown leading up to the closing time of the poll. Messages were shared on social media platforms and internet advertisements were used to reach shareholders.
Despite opposition from some large institutional investors, Tesla aimed to secure the support of small investors. Supporters of the plan believe that Tesla’s success is closely tied to Musk’s leadership, while opponents criticize the plan as excessive and unfair given the income disparity between Musk and the average employee.
Musk’s compensation plan involves stock distributions over ten years based on specific objectives, with a total value of $56 billion. The board of directors supported the compensation plan, stating that it was necessary to incentivize Musk to pursue significant goals for the growth of the company.