Elon Musk Might Just Get a Little Richer As Board Reinstates $56 Billion Pay Package

AP Photo/Kirsty Wigglesworth, Pool

It looks like X owner and CEO of Tesla and SpaceX is going to need a bigger wallet, as Tesla shareholders voted to reinstate his mammoth $56 billion pay package Thursday after a Delaware judge spiked it in January. Shareholders also approved Musk’s bid to move the company’s legal home from Delaware to Texas, where the automaker has its largest factory. Tesla shares jumped 2.9 percent on the news.

Advertisement

Musk was jubilant after the vote, just as I would be if I found out I might be making $56 billion:

It's unclear whether he will actually get the money, though, as his battle will continue:

But the fight over the $56 billion isn’t over. The Delaware judge who struck down Musk’s compensation in January is likely to be asked to rule on whether the latest shareholder vote was fair under the state’s business laws. And last week, a different Tesla shareholder from the one involved in the earlier case filed a new lawsuit, arguing that the second vote should be ruled invalid. 

Either way, Texas Gov. Gregg Abbott is glad to have him in the state:

The judge previously ruled that the pay, which consists of stock options tied to Tesla’s hitting various performance benchmarks, was excessive:

The compensation package was previously worth as much as $56 billion in Tesla stock. In January, a Delaware court called the pay “unfathomable.” Judge Kathaleen McCormick found that Tesla’s board members lacked independence from Musk, failed to properly negotiate at arm’s length with the CEO and didn’t to give shareholders the full picture before asking them to vote on his pay plan.

Advertisement

An obviously pumped-up Musk told the shareholders he loved them:

He's hardly strapped for cash, though, and has a net worth of about $207 billion, which makes him currently the world’s richest person (although on any given day Amazon founder Jeff Bezos or French businessman Bernard Arnault can take the top spot, depending on the stock market).

Although this is obviously good news for Musk, Tesla has had a bumpy road recently as electric vehicle sales have slowed amid lowered demand. The stock was up almost three percent Thursday, as mentioned, but it's still down 27 percent for the year:


Tesla Stock Taking a Beating As Electric Vehicle Demand Plummets


Still... it must be good to be Elon Musk.

Sponsored

Recommended

Join the conversation as a VIP Member

Trending on RedState Videos