• Source:JND
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In a move that has pleased billionaire Elon Musk, Tesla shareholders voted in favor of CEO Elon Musk's $56 billion compensation package after it was invalidated by a Delaware court, a company official said. Brandon Earhart, Tesla's secretary, said investors supported the plan based on preliminary voting results at Tesla's annual meeting in Austin, Texas. Following the news, Elon Musk expressed his happiness and said, “I just want to start off by saying, hot damn, I love you guys.”

The approval represents a major victory for Musk, who campaigned for the package to be reinstated after a Delaware judge invalidated it in January, citing flaws in the original approval process due to insufficient independent oversight.

While some institutional investors expressed concerns about excessive compensation, retail investors rallied behind Musk. Many took to social media platforms like X (formerly Twitter) to defend Musk and highlight his contributions to Tesla's success. Active participation from small investors highlights Musk's unique ability to foster loyalty.

The CEO interacted with them through regular social media posts, a dedicated website explaining the proposals, and even factory tours of some voting shareholders. Approximately 90% of retail investors who voted were in favor of the idea, and Musk proudly shared X over the weekend. This overwhelming support, along with support from some major institutional investors, secured the vote.

Elon Musk's $56 billion pay package is part of an ambitious ten-year, performance-driven plan. He was granted stock options that would split into 12 tranches upon achieving a series of important milestones, including market value, earnings, and revenue targets.

The size of the potential reward was enormous: 303 million stock options, representing about 12% of Tesla shares outstanding in 2018. Each tranche opened 1% of those options when Musk hit the elusive 28 goals. The company's market capitalization rose beyond the $650 billion target in 2020 and has consistently topped earnings expectations. As most revenue milestones were achieved, Musk has vested almost all of his potential stock options.