Musk’s Vote Win Is Far From the End of the Pay Battle

We’ve got good news and bad news on the story that has dominated Tesla coverage for weeks, the shareholder vote on Elon Musk’s pay package. The good news is we have a decision—as Musk posted late Wednesday, shareholders approved his $46 billion pay package. The bad news, at least for those shareholders hoping for a resolution, is that the vote doesn’t mean Musk will get paid. In fact, he may be waiting for years for his money!

As we’ve reported before, the vote won’t supersede Delaware judge Kathaleen McCormick’s January ruling rescinding the pay package, which was first awarded in 2018. McCormick ruled in favor of Tesla shareholder Richard Tornetta who had sued, arguing that the package—the largest in corporate history—was unfair to shareholders. Tesla can use the latest vote in its appeal of the court ruling, but it’s far from clear the company will prevail. And whatever happens next is likely to lead to more appeals, tying this issue up in court for some time to come.