NY.- Tesla shareholders voted this Thursday in favor of ratifying Elon Musk’s gigantic 2018 salary plan, five months after a Delaware judge ordered the company to rescind the package, considering that the board had improperly awarded it.
At Tesla’s annual meeting in Austin, Texas, the vote in favor of the compensation plan does not overturn the court’s ruling, but it provides a public relations victory for Musk and could help his effort to influence a court to give him their performance options in the future.
Taking the stage after preliminary results were announced, Musk said: “I just want to start by saying damn! I love you guys.”
The compensation package was previously worth up to $56 billion in Tesla stock. In January, a Delaware court called the salary “unfathomable.” Judge Kathaleen McCormick found that Tesla’s board members lacked independence from Musk, failed to adequately negotiate on an equal footing with the CEO, and failed to provide shareholders with a full view before asking them to vote on his pay plan.
Tesla shares rose 2.9 percent in regular trading to close at $182.47 after Musk posted on X that the proposal was ready for approval.
The annual meeting featured final votes on a dozen proxy proposals, including an effort by Musk to move Tesla’s incorporation site out of Delaware, where most large publicly traded companies are incorporated, and to Texas, home from the automaker’s largest American factory. Shareholders voted in favor of the measure.
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