Tesla Shareholders Approve $1 Trillion Pay Package for Elon Musk

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00:00Tesla shareholders have just approved a trillion dollar compensation package for CEO Elon Musk,

00:06the largest payout ever awarded to a corporate leader. We start our program there right now

00:11with Ed Ludlow, the co-host of Bloomberg Tech. Ed, shareholders have had their say and there

00:17are strings attached for Musk to make this much money. Shareholders have had their say and in the

00:22end more than 75 percent of the vote went in favor of the compensation package, which is notable

00:28given that Elon Musk's concern and last warning was that historically the index or passive funds

00:35voted in line with the recommendation of the advisory firms. Glass Lewis and ISS had recommended

00:41a no vote. But the data tells us that actually overwhelmingly institutional retail investors

00:47of all types voted in favor of this compensation package, which pans 10 years and is split into 12

00:54tranches set against both operational and financial milestones. The slight gray area in the other vote

01:01we were watching for is that the majority of votes that were cast were in favor of the shareholder

01:08initiated proposal for Tesla to invest in Elon Musk's AI company, XAI. However, what Brandon Earhart,

01:15the general counsel and corporate secretary, said was that because there were a number of abstentions and it was

01:21a non-binding vote anyway, the board would have to go away and look at it before committing to taking

01:26any action. But the level of vote in favor of the compensation, that's the story.