Elon Musk’s massive pay package confirmed – E24

Tesla’s CEO’s total compensation package is close to NOK 600 billion.

Tesla shareholders voted in favor of the pay proposal at the electric car maker’s shareholder meeting Thursday evening.

Musk’s massive compensation package includes stock options worth about $56 billion when the company reaches necessary milestones. At today’s exchange rate, that’s the equivalent of just under 600 billion Norwegian kroner.

Tesla’s stock has since fallen. According to Bloomberg, the stock options in the compensation package are worth about $45 billion, or 480 billion Norwegian kroner, so far.

Musk claimed in a message on Xbox earlier Thursday that the salary package and a proposal to move Tesla’s official corporate affiliation from Delaware to Texas would It is likely to pass with a large advantage.

Tesla Stock On Wall Street afterwards.

Moving to Texas

Tesla shareholders also voted to transfer the company’s affiliation from Delaware to Texas.

Tesla CEO Musk floated the idea of ​​the move earlier this year after a Delaware judge rejected a pay package approved by Tesla shareholders in 2018.

The company’s physical headquarters and one of its factories are located in Austin, Texas.

The tiny state of Delaware is well known for being the state where many of the largest companies in the U.S. are officially incorporated. This has to do with Delaware’s long history of specialized business courts and its reputation as a business-friendly state.

Texas also created a business court, the Texas Business Court, earlier this year to compete with Delaware.

The oil fund said no

The weekend was clear, the Norwegians Oil fund to vote against wage plan For Musk. Owns about 1 percent of TeslaOwns about 1 percent of TeslaThe oil fund itself said it held a 0.98% stake in Tesla at the end of 2023..

“We believe the pay package is excessive, shareholders are diluted too much and the structure is wrong in relation to the payout targets,” wrote Carine Smith Ihenacho, director of ownership and compliance at the Oil Fund. E24 Saturday Column.

She continued: “We have had good dialogues with Tesla, including with the Chairman, on this and other issues,” stressing that dialogue will continue regardless of the outcome of the shareholder meeting.

Musk himself has Crucially, the oil fund does not Will support the wage proposal.

– This is not good, he wrote on X earlier this week.

Tried before

This isn’t the first time Musk has put such a plan on Tesla’s agenda.

In 2018, Tesla’s owners adopted a similar pay package for Musk, giving him the right to buy shares at a discounted price if the company hit certain operational and financial goals. Also voted against the wage agreement I am 2018.

However, an agreement was reached Stopped by the referee In January this year, Tesla was registered in Delaware.

Even if the salary package is re-approved now, it would not automatically pave the way for Musk to receive stock options. This was pointed out by multiple media outlets, including Bloomberg, Financial Times and New York TimesTesla also acknowledged that it was unclear what the approval would mean legally.

Elon Musk is one of the richest people in the world. He is currently ranked third on the Bloomberg Billionaires Index, behind Amazon CEO Jeff Bezos and Bernard Arnault, president of luxury goods group LVMH.

In addition to leading Tesla, Musk is also the CEO of aerospace company SpaceX and the owner of X (formerly Twitter).