Elon Musk’s generous pay package receives approval from Tesla shareholders | Business News
Tesla shareholders have given their approval for Elon Musk’s lucrative pay package, which is now valued at $44bn (£34bn) after declining from its original $56bn (£44bn) value due to Tesla’s stock performance.
Despite opposition from some major institutional investors and proxy firms, the proposal was passed during the annual shareholder meeting in Austin, Texas. Musk, the billionaire CEO, described himself as “pathologically optimistic” on stage and emphasized his track record of delivering results.
However, the approval does not end the legal challenges surrounding the pay package, with a lawsuit in a Delaware court still ongoing after being invalidated by a judge in January.
Musk may face additional lawsuits regarding the deal, which is set to be the largest in American corporate history.
Despite initial approval in 2018, the future of the pay package remains uncertain, with legal experts predicting further battles in the Delaware court system.
Additionally, shareholders backed a proposal to relocate Tesla’s legal headquarters from Delaware to Texas, signaling potential changes for the company’s corporate structure.
A general view of the Tesla gigafactory in Austin, Texas, U.S., February 28, 2023 Pic: Reuters
The judge’s criticism of Tesla’s board members for being influenced by Musk’s personal and financial ties highlights the ongoing governance issues surrounding the company. Shareholders also approved measures to enhance investor control and governance within the company.
Despite the challenges, Tesla’s shareholder meeting drew a significant online audience, with viewers tuning in to observe the company’s future direction amidst market fluctuations and legal battles.
As Tesla’s stock price continues to face volatility, the approval of Musk’s pay package signifies a significant milestone in the company’s history.
