A suggestion to pay Tesla shareholders had previously been made by Elon Musk. Finally, the annual meeting resulted in a statement of approval for Elon Musk’s salary of $56 billion. However, the agreement on this matter divided shareholders between the main shareholders and retail Tesla investors.

Tesla approve Elon Musk’s payroll

The investors themselves provide various statements regarding this payroll topic. Some investors themselves have given good signals on this topic, such as Andrew Theyken Bench, who owns less than 5,000 Tesla shares. According to him, Elon Musk has worked well to provide him with investment profits. He considered that it would be unfair to Musk if he didn’t get anything. This decision of Tesla’s investors is related to Tesla’s respect and fairness.

This decision was taken after the results of another meeting also stated that they agreed to moving the company to Texas, which was previously located in Delaware. Despite this, the Delaware Judge chose to keep the voting results cast by shareholders in check. Apart from that, Tesla was also asked to prove that the process was taking place voluntarily without any coercion from Musk.

Natela Shenon, a business law attorney and partner at the Grant Sheldon law firm, said that the Delaware judge gave such a statement because Musk has control over the Tesla board. This makes the decision given to Musk less representative of the interests of shareholders. Musk himself typed on X that 90% of retail shareholders supported his proposal.

On the other hand, the California Public Employees Retirement System stated that they had reservations about Musk’s salary, which was considered too large. The amount Musk is paid does not match Tesla’s performance. Then, according to Broadridge, small investors themselves will only vote for approximately 30% of their shares in 2023. Retail shareholders are apathetic to the vote, even though they support it.

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