They also gave their approval to the idea of relocating the state of incorporation of the company to Texas.
After being declared invalid by a court in Delaware for a period of many months, Elon Musk’s multi-billion dollar compensation plan has once again been authorized by Tesla shareholders. The owners of the electric car manufacturer gave their approval to a request to reinstate Musk’s pay package, which is presently valued at over $48 billion, according to Bloomberg. The motion was approved during the annual shareholder meeting of the firm.
In the past, Judge Kathaleen McCormick of the Chancery Court in Delaware referred to the compensation the Tesla CEO received, which was valued at $56 billion when it was initially granted in 2018, as a “unfathomable sum.” Musk’s response was to threaten to shift the company’s incorporation to the state of Texas for further consideration. Tesla’s shareholders gave their official approval to the action during the meeting that took place.
Despite the fact that Musk’s compensation was approved, there is no assurance that his staggering pay would be recovered. According to Bloomberg, the vote does not render the judge’s initial verdict unlawful; nevertheless, Tesla will almost probably appeal the decision and refer to the most recent shareholder vote as evidence that the company’s stockholders have approved of the decision.
It should come as no surprise that Musk seems happy with the vote. To begin, I would want to take this opportunity to say, “Hot damn. “I love you guys,” he remarked as he took the platform at the shareholder meeting with the other attendees. After some time had passed, he stated that the return of his wages would not have any impact on his short-term relationship with Tesla. The fact that I am required to hold Tesla stock for a period of five years is something that should be emphasized. It is not currency, and I am unable to cut and run with it, nor would I wish to do so.