Elon Musk declared victory last night, ahead of a vote by Tesla shareholders on his record £44 billion pay package.
Just hours before the electric car maker’s annual meeting, the billionaire said investors were about to approve the highest-ever payout in corporate American history.
“Both of Tesla’s shareholder resolutions are currently passing by wide margins,” Musk wrote in a post on X. “Thanks for your support!”
Tensions have increased since a Delaware court annulled his compensation package in January, ruling it was improperly set by the board.
Musk, one of the richest men in the world, has rallied support after a wave of shareholders suggested they would revolt.
Record wages: Tesla boss Elon Musk (pictured) said investors would approve his £44 billion package
Influential proxy advisors Institutional Shareholder Services and Glass Lewis opposed the deal and Tesla’s eighth-largest shareholder, Norway’s sovereign wealth fund, spoke out against the package.
The deal, which was struck six years ago, was tied to performance targets such as share price and profits and meant Musk was entitled to £44 billion. Musk, who is worth an estimated £154 billion, does not receive a salary from Tesla.
In January, a US judge struck down the package, but the directors insisted the reward was intended to keep Musk incentivized as he juggles owning several other companies, including X and satellite company Space X, amid fears he might walk away from Tesla.
Dan Ives, a technology analyst at Wedbush Securities, said a vote in favor of the tycoon would show that “Tesla is Musk and Musk is Tesla.”
He added: “In a nutshell, if this proposal failed, many bad things and scenarios could have happened, including Musk starting a path to not becoming a CEO.
“Instead, it’s roses and rainbows in Austin, although demand challenges remain and this is a crucial period for Tesla and Musk to navigate this turbulent period.”
Last night’s vote on the wage agreement was not legally binding.
That means Musk could face legal challenges, including the prospect of Delaware courts still not recognizing the vote and still voiding the deal.
‘A vote by shareholders would not automatically result in the decision (of the court) being reversed. We are in uncharted waters here,” said Samantha Crispin, an attorney at law firm Baker Botts.
Shares of Tesla rose 3.7 percent last night.