Tesla Courts Small Investors to Vote for Musk's $56 Billion Payday

By Thea Felicity

Jun 10, 2024 12:59 PM EDT

Tesla CEO Elon Musk gestures as he arrives to visit the construction site of the future US electric car giant Tesla, on September 03, 2020 in Gruenheide near Berlin. - Tesla builds a compound at the site in Gruenheide in Brandenburg for its first European "Gigafactory" near Berlin.
(Photo : ODD ANDERSEN/AFP via Getty Images)

Tesla is seeking support from retail investors to support Elon Musk's $56 billion pay package following a "chaotic" division among major shareholders, as Reuters reported. 

As the June 13 annual meeting approaches, Tesla aims to secure votes reaffirming Musk's leadership amid a contentious Delaware court ruling. The company's proposal also includes reincorporating in Texas and re-electing directors, including Musk's brother. 

With big investors giving mixed signals and bigger ones like the Norwegian sovereign wealth fund vowing to oppose the pay package, Tesla's outreach focuses on small shareholders, using online platforms and factory tours. 

READ MORE: Tesla Slams Lawyers Demanding $5.6 Billion Payout for Voiding Elon Musk's Multibillion-Dollar Pay Package

Opponents and Supporters of Elon Musk's Pay Package

Opposition to Elon Musk's $56 billion pay package stems from concerns regarding its commensurability with Tesla's performance. Critics question whether such compensation aligns with the company's financial achievements. 

Entities like the California Public Employees' Retirement System and, as previously mentioned, Norway's sovereign wealth fund have voiced skepticism in this regard. 

Meanwhile, proponents, including T. Rowe Price, view the package as indicative of strong alignment with investor interests. They suggest that Musk's leadership has contributed to Tesla's success and, therefore, justifies substantial compensation. VCPost also reported that other billionaire investors, like Ron Baron, are giving it a green signal.

Elon Musk's $56 billion pay package is now in the hands of Tesla shareholders. The outcome of the vote, whether it will be in favor or against, remains a suspense, adding a layer of intrigue to this high-stakes situation.

READ NEXT: Tesla CEO Elon Musk's $56 Billion Pay Package Gets Support From Billionaire Investor Ron Baron

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