Elon Musk, Tesla’s CEO, has taken to his social media platform X to campaign for shareholder approval of his $46.5 billion pay package.
This campaign includes a personal tour offer of Tesla’s Austin factory and numerous posts urging shareholders to vote for his compensation.
Musk’s lobbying comes after a Delaware judge voided the pay package in January, siding with a dissident shareholder who argued that Musk’s compensation was excessive.
Now, Tesla is pushing for a reapproval.
Musk and the company’s board are stressing his pivotal role in making Tesla the world’s most valuable automaker.
In recent weeks, Musk has posted extensively on X.
His posts include a video showcasing Tesla’s vehicles and messages supporting his need for a significant shareholding to steer the company, especially in its AI initiatives.
He has also criticized investors opposing his pay, calling them “oathbreakers.”
Tesla’s board has publicly backed Musk, citing his contributions to the company’s growth.Â
Row over Musk’s pay continues
Board chair Robyn Denholm highlighted Musk’s achievements on a company-supported website and advocated for the pay package’s approval.
However, the pay package faces significant opposition.Â
Some institutional investors, like Nordea Asset Management and CalPERS, have disapproved.
Proxy advisory firms Glass Lewis and Institutional Shareholder Services have also recommended rejecting the package.
They argue that Musk’s existing stake already incentivizes his performance and that additional shares would dilute other investors’ stakes.
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Musk’s use of X for this campaign reflects a broader pattern of using the platform to benefit his ventures, such as promoting SpaceX milestones and Tesla product launches.Â
However, his social media activity has previously led to legal troubles.
This includes a $20 million fine by the SEC for misleading tweets about taking Tesla private.
The outcome of the shareholder vote, set for Tesla’s annual meeting on June 13, remains uncertain.
Even if shareholders approve the package, it will likely face further legal scrutiny from the Delaware court.
Legal experts say the pay package to withstand challenges, it must gain approval from over 50 percent of voting shares not held by Musk or his brother, Kimbal Musk.
