Elon Musk declared victory last night ahead of a Tesla shareholder vote on his record £44bn pay package.
Just hours before the electric car maker’s annual meeting, the billionaire said investors would approve the highest pay deal ever seen in U.S. corporate history.
“Both Tesla shareholder resolutions are currently passing by wide margins,” Musk wrote in a post on X. “Thank you for your support!”
Tensions have risen since a Delaware court voided his compensation package in January, finding the board had set it inappropriately.
Musk, one of the world’s richest men, has been rallying support after a flood of shareholders suggested they would rebel.
Record payout: Tesla boss Elon Musk (pictured) said investors were ready to approve his £44bn package
Influential proxy advisors Institutional Shareholder Services and Glass Lewis opposed the deal, and Tesla’s eighth-largest shareholder, Norway’s sovereign wealth fund, came out against the package.
The deal, set up six years ago, was linked to performance targets such as share price and profits and meant Musk was entitled to £44bn. Musk, worth an estimated £154bn, receives no salary at Tesla.
In January, a US judge struck down the package, but directors insisted the payment was aimed at keeping Musk incentivized as he juggles ownership of several other companies, including X and satellite firm Space that he can walk away from Tesla.
Dan Ives, a technology analyst at Wedbush Securities, said a vote for the tycoon would show that “Tesla is Musk and Musk is Tesla.”
He added: “Simply put, if this proposal had failed, a lot of bad things and scenarios could have happened, including starting a path for Musk not to be CEO.”
“Instead, in Austin it’s roses and rainbows, although demand challenges remain and this is a crucial period for Tesla and Musk to navigate this turbulent period.”
Last night’s wage deal vote was not legally binding.
That means Musk could face legal challenges, including the possibility that Delaware courts still won’t recognize the vote and void the deal.
‘A shareholder vote would not trigger an automatic reversal of the (court’s) decision. “We are in uncharted waters,” said Samantha Crispin, an attorney with the law firm Baker Botts.
Tesla shares rose 3.7 percent last night.