Tesla Investor Backs Musk’s $56 Billion Pay Deal

Tesla

Tesla investor Scottish Mortgage Investment Trust announced on Thursday that it will continue to support CEO Elon Musk’s $56 billion compensation package at the upcoming annual shareholder meeting.

Last month, Tesla (NASDAQ:TSLA) requested shareholders to reaffirm their approval for Musk’s unprecedented pay deal after a Delaware judge rejected it in January.

Scottish Mortgage initially agreed to the package set by Tesla in 2018, and the firm maintains that the agreed amount should be honored, stated Tom Slater, the manager at the investment trust. Musk’s compensation, the largest in corporate America, includes no salary or cash bonus and is tied to Tesla’s market value reaching up to $650 billion over the next decade from 2018.

Tesla’s market value was $574 billion as of Wednesday’s closing price, having previously surpassed the $1 trillion mark in 2021.

Tesla’s chair, Robyn Denholm, has reportedly been actively engaging with shareholders to secure their vote for the approval of Musk’s compensation deal.

Scottish Mortgage, managed by Baillie Gifford, has not yet decided on Musk’s proposal to relocate Tesla’s incorporation to Texas, according to the Financial Times, which first reported the news.

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