Elon Musk thanks investors for backing $56 billion Tesla pay package, Texas governor welcomes him to ‘no tax state’

Tesla investors voted in favour of Elon Musk's $56 billion pay package and supported relocating the company's headquarters to Texas. We take a look at how the internet reacted.

Jocelyn Fernandes
First Published14 Jun 2024, 08:06 AM IST
Tesla Inc. investors showed overwhelming support for a historic $56 billion pay package for CEO Elon Musk and a relocation of the company's legal domicile from Delaware to Texas.
Tesla Inc. investors showed overwhelming support for a historic $56 billion pay package for CEO Elon Musk and a relocation of the company’s legal domicile from Delaware to Texas. (Reuters / Mario Anzuoni)

Showing support for Tesla CEO Elon Musk, a majority of the EV automaker's investors voted in favour of the tech billionaire's historic $56 billion pay package. They also voted in support of the company's relocation of domicile from Delaware to Texas.

Known for his active posts on social media, especially self-owned platform X (formerly known as Twitter), Musk celebrated the development late on June 13 and thanked shareholders for their support.

Also Read | Elon Musk vs Lawsuits: A look at all major legal battles facing the tech billionaire and his companies

Approval Marks a Milestone for Tesla

The approval of this significant pay deal is a major milestone in US corporate history. It aims to secure Musk's long-term commitment to Tesla amidst ongoing legal challenges. The vote comes amid shareholder concerns and legal disputes surrounding the initial 2018 pay package, which was recently invalidated by a Delaware court. This decision prompted Tesla's board to seek reinforcement through shareholder endorsement.

A preliminary voting tally indicated strong support from a coalition of institutional investors and retail shareholders. This positions Tesla to potentially navigate legal hurdles and reinforce its leadership stability under Musk. The final outcome of the vote will be announced at Tesla's headquarters in Texas later today.

Also Read | Elon Musk's $56 billion pay package: How Tesla shareholder's approval could play out in the courts

Opposition from Major Proxy Firms

Despite opposition from major proxy firms such as Glass Lewis and Institutional Shareholder Services (ISS), and significant institutional investors like Norway's sovereign wealth fund and prominent US pension funds, Musk's persuasive influence over retail investors appears to have swayed the balance in favour of the proposed package.

Beyond the pay package, shareholders also voted on pivotal corporate decisions, including the relocation of Tesla's legal headquarters and the re-election of board members. This underscores broader strategic shifts within the company.

Also Read | Elon Musk fired 80% of Twitter, and Silicon Valley companies adopted the practice, finds report

Here's how the Internet Reacted

Texas Governor Greg Abbott welcomed Musk to the state that has “neither a personal nor a corporate tax”.

Musk's mother also expressed her thanks to investors.

Investors took to X to congratulate Musk and got responses from the billionaire expressing gratitude.

There were also the usual memes and criticisms.

(With inputs from Agencies)

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.MoreLess
First Published:14 Jun 2024, 08:06 AM IST
HomeCompaniesNewsElon Musk thanks investors for backing $56 billion Tesla pay package, Texas governor welcomes him to ‘no tax state’

Most Active Stocks

Tata Steel

166.80
03:59 PM | 15 JUL 2024
-1.9 (-1.13%)

NTPC

385.65
03:58 PM | 15 JUL 2024
8.4 (2.23%)

Bank Of Baroda

258.60
03:53 PM | 15 JUL 2024
7.85 (3.13%)

Bharat Electronics

331.25
03:55 PM | 15 JUL 2024
-2.05 (-0.62%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Indian Overseas Bank

68.33
03:41 PM | 15 JUL 2024
4.68 (7.35%)

M M T C

94.92
03:40 PM | 15 JUL 2024
6.31 (7.12%)

NLC India

297.75
03:57 PM | 15 JUL 2024
18.6 (6.66%)

IDBI Bank

91.54
03:58 PM | 15 JUL 2024
5.6 (6.52%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,771.00290.00
    Chennai
    73,827.00-145.00
    Delhi
    73,972.00-799.00
    Kolkata
    74,045.0073.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L-0.01
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsCibilPremiumMint Shorts