Tesla is about to hold a shareholder meeting today (6/13), and the vote on Elon Musk’s $56 billion compensation package has just concluded. More than 1.3 billion votes in favor (passing the 1 billion threshold) support Musk in receiving the remuneration he deserves. Musk also thanked everyone for their support on X.

Musk's huge salary lawsuit in court

According to previous reports from Chain News, Musk has not adopted a fixed salary since 2018. Instead, he has split the long-term goals set by the company into phased achievements, and will receive rewards similar to performance bonuses and dividends each time he achieves them. After reaching the target, Musk can subscribe for Tesla shares at a price of 23.34 per share, but there is a 5-year lock-up period.

(Look how Tesla makes money! How does Musk get his rich salary?)

Tesla shareholders have been complaining about Musk’s previous acquisition of Twitter (now renamed Pull the 2018 compensation package awarded to Musk by the board of directors.

The judge presiding over the case, Kathaleen McCormick, ruled in January that the scheme was invalid. The judge found that Tesla's board of directors was not independent enough (it was too influenced by Musk) and that the governance process of the grant and the value of the stock were "unfair" to other shareholders.

Tesla shareholders vote together

Therefore, this time before the shareholders' meeting, Tesla invited all shareholders to vote online, hoping to petition the court to reinstate the plan through shareholder approval again.

According to The New York Times, Ron Baron, chairman of Baron Capital, an investment fund management company, said in a letter urging other shareholders to re-approval of Mr. Musk’s compensation package:

Without his tireless efforts and uncompromising standards, Tesla would not exist. Tesla is Elon!

Cathie Wood, CEO of Ark Invest, who has always supported Tesla, also said on X:

He has been spectacularly successful and should be rewarded accordingly.

Ark also just released its forecast for Tesla's stock price yesterday, with a chance of reaching $2,600 per share by 2029. It shows that it is very optimistic about Tesla's fundamentals.

(Ark’s order for Tesla is expected to be $2,600 in 2029, Musk: It’s challenging but achievable!)

With more than 1.3 billion votes in favor, it is still unknown whether it will affect the court's decision.

Voting has just closed, with more than 1.3 billion votes in favor (passing the 1 billion threshold) in support of reinstating Musk's compensation case, which will affect about 7% of Musk's Tesla holdings.

However, even if the shareholders' consent is obtained, there is no clear provision on whether it will affect the court's judgment. Tesla also admitted in a regulatory filing that a yes vote "may not fully resolve the issue."

This article Tesla’s shareholder meeting started today, with more than 1.3 billion votes in favor of Musk receiving high compensation. First appeared on Chain News ABMedia.