Is Elon Musk really working that hard to ensure his compensation package gets approved?

Is Elon Musk really working that hard to ensure his compensation package gets approved?

Elon Musk giving YouTube tech reviewer Marques Brownlee a tour of the Fremont factory. (Credit: MKBHD/YouTube)

Tesla, Inc.  shares rallied strongly on Monday after the electric-vehicle giant’s CEO Elon Musk made a surprise visit to China over the weekend and met with Premier Li Qiang and other key officials. The whirlwind visit was followed by a flurry of announcements that catalyzed the upward move.

A Tesla bull-turned-skeptic, however, suggested that there could be more than meets the eye.

What Happened: “Anyone else feel it’s bullish that Elon is working so hard for $TSLA shareholders to ensure that he gets his 2018 comp plan approved at the 2024 SH meeting?” said Future Fund’s Gary Black in a post on X, formerly Twitter.

The co-founder and Managing Partner at Future Fund said he always believed Musk would receive overwhelming approval for his pay package at the 2024 annual shareholder meeting. About 73% of outside votes were cast in favor of his compensation plan in 2018, he said.

“But positive 1Q earnings call and now this China deal with $BIDU surely increases odds of approval. Only @elonmusk could get this China deal done so quickly,” he said.

The annual shareholders is scheduled for June.

Why It’s Important: Tesla sprang a surprise in its proxy statement filed earlier this month by calling for its shareholders to vote once again on Musk’s 2018 compensation plan. The plan was previously rescinded by a Delaware Chancery Court.

While Tesla shares were languishing at that time, they have come back up strongly following the first-quarter earnings announcement and Musk’s China visit. A legal expert previously called out Tesla’s action as unfair, equating it as a payment for work he has already performed, which means that the company doesn’t get any benefit from it.

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