Elon Musk has said that two controversial plans are likely to be approved by shareholders. One would move Tesla to Texas, and the other would pay Musk $56 billion for his work as CEO.
Musk wrote on X, which used to be Twitter, that both proposals were passing by large margins and included two charts that showed how many votes each had received so far. Thank you for your help!!
It will end at 4:30 p.m. Central Daylight Time (5:30 p.m. ET) on Thursday. This is the same time zone that Tesla’s headquarters in Austin, Texas use.
A few months ago, proxy advisory firms Glass Lewis and Institutional Shareholder Services told shareholders to turn down Musk’s pay package, which includes about $56 billion worth of Tesla shares. This would increase his stake in the car company from 12.89% to 22.4%.
CalPERS, the California Public Employee Retirement System, said in a statement on Wednesday that it would vote against Musk’s pay package because it is worth more than 140 times the annual pay given to similar CEOs who do a good job.
CalPERS manages close to $465 billion in assets and has a $1.67 billion stake in Tesla, making it one of the top 25 shareholders in the electric car company. Before, in 2018, the pension fund voted against Musk’s pay deal.
In February, a Delaware court threw out Musk’s “unfathomable” pay package because they were worried about the CEO’s influence on the decision, which they said was caused by the board being “swept up by rhetoric” about “Musk’s superstar appeal.”
If the deal is approved, Musk would still have to persuade the Delaware court to OK the pay package, even if there were more legal challenges to the all-or-nothing deal.
Following the Delaware court’s decision in February, Tesla also said it would be reincorporating in Texas. This is because the company has decided to move its headquarters to Texas, which must also be approved by shareholders.
Elon Musk’s (TSLA) shares went up 4% on Thursday after losing 31% of their value over the past year. This was due to worries about rising competition from cheaper cars in China and a slowdown in the market for electric cars.
Musk has said in the past that he might stop working on Tesla and instead focus on developing artificial intelligence technologies. This has made people worry that if shareholders don’t agree with his pay package, it could hurt the price of Tesla’s shares.
