It marks a victory for Musk, who has long campaigned for the decision on social media.
In 2018, it was decided that Musk would receive 303 million stock options if he achieved certain goals. These goals were met in 2020, but legal proceedings meant that the payouts could not be made.
Depending on Tesla’s share price, Musk’s payout could be as much as $56 billion.
This is the largest salary a chairman can receive in the United States.
The package is equivalent to nearly 300 times what the highest-paid director in the United States made last year and was supported by 73% of shareholders who voted six years ago.
The board said Musk deserved the package because of the ambitious goals he had achieved under his leadership at Tesla and that it was necessary for his dedication to the company.
This has raised concerns that the board may be too reliant on Musk.
“I love you,” Musk told a cheering crowd after the meeting, saying the company has the “most amazing shareholder community.”
The company’s shares rose 3% following the decision.
As a result of a lawsuit brought by the company’s small shareholders, a Delaware City judge struck down the package.
In a ruling handed down earlier this year, Judge Katherine McCormick said the amount was “unfair” and ruled that the package had been decided by a board close to Musk and was questionable.
Dan Ives, an analyst at US-based investment bank Wedbush Securities, said the decision showed investor confidence in Musk and reduced the threat of him leaving the company.
“If this proposal had failed, there could have been a number of worst-case scenarios, including Musk stepping down as CEO of Tesla.”
The vote is not binding, and it is unclear whether it will override the court’s decision.
