Tesla shareholders have voted to approve a compensation package for CEO Elon Musk that would keep him at the helm of the electric vehicle maker for another ten years as the company shifts its strategic focus toward artificial intelligence development.
The pay package faced notable opposition from institutional investors, advisory firms, and shareholder activists who characterized the compensation as disproportionate. Critics pointed to Musk’s divided attention across multiple ventures, including his role in government service, and argued that some of his outside activities have negatively impacted Tesla’s brand perception.
Despite the criticism, many shareholders supported the measure based on Musk’s track record of growing Tesla into the world’s most valuable automotive company while simultaneously becoming the wealthiest individual globally. At Tesla’s Austin headquarters, Musk received an enthusiastic reception from employees and supporters who greeted him with sustained applause and chants. Speaking to the crowd, he framed the moment as transformative for the company’s trajectory.
The compensation structure represents a significant milestone in executive pay practices, even within an industry known for substantial CEO remuneration. The package draws comparisons to Musk’s previous Tesla compensation agreement, valued at approximately $56 billion, which remains subject to legal proceedings. That earlier package was struck down by a Delaware court over concerns about the approval process, and the ruling is currently under appeal before the Delaware Supreme Court.
The shareholder vote comes at a pivotal moment for Tesla as the company expands beyond traditional automotive manufacturing to pursue opportunities in artificial intelligence and autonomous systems technology.
