Elon Musk’s Pay Package of $45 Billion Is Reinstated Making Him the Highest Paid U.S. Executive in History

Elon Musk SpaceX Tesla Frederic Legrand COMEO Shutterstock
image credit: Frederic Legrand COMEO/Shutterstock

Tesla shareholders have reinstated Elon Musk’s enormous pay package, stirring both celebration and controversy. The decision follows a tumultuous period marked by legal battles and Musk’s dramatic threats. This pivotal move could reshape Tesla’s future and Musk’s role within the company.

Shareholders Restore Musk’s Massive Pay Package

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image credit: Adeel Ahmed photos/shutterstock

Tesla shareholders have reinstated a nearly $45 billion pay package for CEO Elon Musk. Musk, also the owner of social media platform X, was confident shareholders would approve the payout previously denied by a Delaware judge in January.

Celebration at Shareholders Meeting

Gigafactory Berlin Brandenburg Tesla Kittyfly Shutterstock
image credit: Kittyfly/Shutterstock

The reinstatement of the $44.9 billion package was confirmed at Tesla’s 2024 annual shareholders meeting on Thursday. The announcement was met with a standing ovation and chants of “Elon, Elon, Elon,” though vote totals were not immediately disclosed.

Musk’s Enthusiastic Response

Celebrity Elon Musk 2023 Frederic Legrand COMEO Shutterstock
image credit: Frederic-Legrand-COMEO/Shutterstock

Musk enthusiastically addressed shareholders following the announcement. He expressed his gratitude and promised that Tesla would soon be delivering significant changes.

Stock Surge Ahead of Vote

X formerly twitter social media sdx15 shutterstock
image credit: sdx15/shutterstock

Earlier on Thursday, Tesla shares rose as the company indicated in a regulatory filing that stockholders were expected to approve the package. The filing included Musk’s posts on X, showing charts that suggested strong shareholder support.

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image credit: Svet foto/Shutterstock

The charts also indicated shareholder approval for relocating Tesla’s legal home from Delaware to Texas. This move was also sanctioned by shareholders on Thursday.

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image credit: Novikov Aleksey/Shutterstock

Despite the favorable vote, Musk’s all-stock compensation remains tied up in Delaware Chancery Court. In January, Chancellor Kathaleen St. Jude McCormick ruled that Tesla misled shareholders when the compensation was approved in 2018, leading to ongoing appeals by Tesla.

Uncertainty Before the Vote

Elon Musk SpaceX Tesla Frederic Legrand COMEO Shutterstock (1)
image credit: Frederic Legrand COMEO/Shutterstock

Speculation about Tesla’s future intensified before the vote, with talk of Musk possibly shifting AI research to another of his ventures. There were even suggestions that he might walk away from Tesla if his payout was denied.

Musk’s AI Ultimatum

Young redheaded woman on phone with bike and coffee Dean Drobot Shutterstock
image credit: Dean Drobot/Shutterstock

Musk has warned on X that he might develop AI at another company if he doesn’t secure a 25 percent stake in Tesla. His new venture, xAI, recently garnered $6 billion in funding for artificial intelligence development.

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