Here’s How Elon Musk’s Pay Package Vote Could Affect Tesla Stock

Core Insights - Tesla shareholders strongly endorsed Elon Musk's proposed pay package, with approximately 75% voting in favor, which could potentially be worth $1 trillion if all performance milestones are met [2][4] - Following the vote, Tesla's stock price increased by about 3%, indicating positive market sentiment towards the decision [2] - Musk's pay package is contingent upon raising Tesla's market capitalization from around $1.5 trillion to over $8.5 trillion, a significant challenge [3] Shareholder Sentiment - The approval of the pay package was met with enthusiasm from Musk's supporters, who viewed it as a positive step for the company's future [4] - Analysts, including Jesse Fried from Harvard Law School, interpreted the shareholder decision as logical, emphasizing the potential benefits of keeping Musk focused on Tesla [4] - Ian Keas from Gallagher's executive compensation consultancy noted that the unusual nature of the incentive aligns Musk's rewards with clear performance outcomes, suggesting a level of safety for shareholders [4] Criticism and Concerns - Despite the strong endorsement, some criticism arose prior to the vote, with proxy-advisory firm Glass Lewis & Co. advising against the proposal due to concerns over its potential excessive dilution of shareholder value [5] - The pay package was described as "unprecedented," raising significant concerns among some shareholders regarding its implications [5]