Overnight in the US, Tesla shareholders approved CEO Elon Musk’s US$56 billion pay package, along with the proposal to move the company’s legal home from Delaware to Texas.
Shareholders also approved other proposals including the re-election of two board members: James Murdoch (son of Rupert Murdoch), and Elon’s brother Kimbal Musk.
Shareholders did increase the level of investor control by passing proposals in favor of shortening board terms to one year and lowering voting requirements for proposals to a simple majority, despite board opposition to both.
Onstage at the meeting, Musk described himself as pathologically optimistic.
“If I wasn’t optimistic this wouldn’t exist, this factory wouldn’t exist,” Musk said to applause. “But I do deliver in the end. That’s the important thing.”
Musk had tipped off late on Wednesday that the proposals were garnering huge support and thanked shareholders. A chart on his social media platform X showed the resolutions were set to pass by wide margins.
Tesla on Thursday did not disclose the voting tallies, which are expected to be revealed in coming days. At least a half-million viewers watched the meeting on the livestream on social media platform X, and about 40,000 watched on YouTube.
The approval also underscores the support that Musk enjoys from Tesla’s retail investor base, many of whom are vocal fans of the mercurial billionaire. The proposal passed despite opposition from some large institutional investors and proxy firms.
But regarding Musk’s pay package, it may face some hurdles before it goes through. As per Reuters:
Tesla had been drumming up support for Musk’s pay package, especially from retail investors, who make up an unusually high percentage of its ownership base but who often do not vote.
The Tesla CEO could still face a long legal fight to convince a Delaware judge who invalidated the package in January, describing it as “unfathomable“.
He may also face fresh lawsuits on the package, which would be the largest in US corporate history.