Tesla (TSLA) shareholders are voting on whether to reapprove a compensation package currently valued at roughly $46 billion for CEO Elon Musk ahead of a June 13 shareholder meeting. The pay package was previously approved by 73% of independent shareholders in 2018 but voided by a Delaware judge in early 2024.

What do you think? Should Tesla shareholders reapprove CEO Elon Musk's pay package proposal?

The compensation arrangement would provide Musk with stock options (in lieu of a salary or cash bonuses) if Tesla met certain market capitalization and operational thresholds from 2018 to 2028. In an April proxy statement introducing the new vote, board chairperson Robyn Denholm said Tesla "has met every single one of the 2018 CEO pay package’s targets."

The package required Musk to increase Tesla's market value from $59 billion to $650 billion within 10 years and grow revenue to $175 billion or adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to $14 billion to qualify for the full pay. Additionally, it stipulated Musk must hold on to the shares he receives for five years.

Originally, the package was valued at up to about $56 billion dollars — by far the largest compensation opportunity ever granted to a public company executive. Nowadays, based on Tesla's market capitalization, it would be worth up to about $46 billion.

Musk contends that he needs enough shares in the electric vehicle company to maintain control over it. The CEO's current ownership stake in Tesla is 12.9%. According to proxy adviser firm Glass Lewis, which is outspokenly against the proposal, the new package would increase that stake to 22.4%.

"I am uncomfortable growing Tesla to be a leader in AI & robotics without having 25% voting control. Enough to be influential, but not so much that I can’t be overturned," Musk said from his X account in January. "Unless that is the case, I would prefer to build products outside of Tesla."

Denholm described the package for Musk — who is also involved in running several other companies, including SpaceX and X (formerly Twitter) — as "a commitment that was, and fundamentally still is, about retaining Elon’s attention and motivating him to focus on achieving astonishing growth for our company."

Tesla shareholders can vote on the measure before the end of June 12 or at the virtual annual meeting. Individual investors currently own an estimated 42% of Tesla shares. The compensation vote requires a simple majority of votes to pass, excluding Musk and his brother Kimbal Musk.