11:05 AM EDT, 06/14/2024 (MT Newswires) -- (Updates with additional details.)

Tesla's (TSLA) largest outside investor Vanguard said it voted for Chief Executive Elon Musk's $56 billion pay package Thursday, marking a reversal from its initial vote against the package in 2018, when it was first approved by shareholders, Reuters reported Friday, citing a note it saw.

Vanguard said in the note that although Musk's compensation was "a substantial outlier" among chief executive officers, Tesla's shareholder returns ranked in the 98th percentile among all Russell 3000 companies from 2018 to 2023, Reuters reported.

A Delaware judge invalidated Musk's compensation package in January, which led to Thursday's voting. Top proxy advisers and several large investors had opposed the compensation package, citing concerns that it was too high, according to the report.

Vanguard also supported the proposal to relocate Tesla's incorporation to Texas, saying that it found no significant differences in shareholder rights between Delaware and Texas, Reuters reported.

Vanguard is the second largest shareholder of Tesla, with 232 million shares as of March 31, which represents about 7% of the company, following Musk's 13% stake, according to the report.

Tesla and Vanguard did not immediately respond to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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