back to top
Wednesday, July 24, 2024

Tesla shareholders approve Elon Musk’s controversial pay package

Tesla shareholders approve Elon Musk’s multi-billion-dollar pay package despite a court ruling invalidating it, highlighting confidence in his leadership.



Trending Stories

- Advertisement -

In a decisive move, shareholders have again approved Elon Musk's multi-billion-dollar pay package. This comes several months after a Delaware court had previously invalidated the agreement. According to Bloomberg, during Tesla's annual shareholder meeting, stockholders signed off on a proposal to reinstate Musk's pay package, valued at approximately USD$48 billion.

Judge Kathaleen McCormick of Delaware's Chancery Court had earlier referred to Musk's pay package, initially worth US$56 billion when first approved in 2018, as an “unfathomable sum.” In response to this ruling, Musk threatened to relocate Tesla's state of incorporation to Texas. During the recent meeting, shareholders officially approved this move as well.

Implications of the shareholder vote

While Musk's compensation approval is a significant step, it does not guarantee his substantial pay will be reinstated. The vote does not negate the judge's initial ruling. However, Tesla is expected to appeal and use the latest shareholder vote as evidence that the company's stockholders support the compensation plan.

Musk was visibly pleased with the outcome of the vote. “I just want to start by saying, hot damn. I love you guys,” he expressed after taking the stage at the shareholder meeting. He reassured shareholders that the reinstatement of his pay would not impact his dedication to Tesla in the short term. “It is worth emphasising that it's Tesla stock that I have to own for five years. It's not cash, and I can't cut and run, nor would I want to,” Musk stated.

Looking ahead

The recent approval by Tesla shareholders underscores their confidence in Musk's and vision for the company. Despite the legal hurdles, the strong support from stockholders may play a crucial role in the upcoming appeals process. Tesla's journey forward continues to be closely watched by investors and industry experts.

Tech Edition has partnerships that involve sponsored content. While this financial support helps us with daily operations, it doesn't affect the integrity of our reviews. We remain committed to delivering honest and insightful content to our readers.

Tech Edition is now on Telegram! Join our channel here and catch all the latest tech news!

Emma Job
Emma Job
Emma is a freelance news editor at Tech Edition. With a decade's experience in content writing, she revels in both crafting and immersing herself in narratives. From tracking down viral trends to delving into the most recent news stories, her goal is to deliver insightful and timely content to her readers.

Featured Content

Netgear Orbi 970 Series review: Revolutionising home WiFi with unmatched coverage

Read our comprehensive review of the Netgear Orbi 970 Series to discover how it transforms home WiFi with advanced features like WiFi 7, Quad-Band technology, and unparalleled coverage.

Related Stories