Tesla CEO Elon Musk’s $45 billion pay package has been approved by shareholders after a contentious vote. The decision, announced recently, marks a significant win for the billionaire as he battles to secure the largest compensation package ever awarded to a US-listed company executive.
Following the outcome of the vote, Musk expressed his gratitude to shareholders, exclaiming, “I just want to start off by saying, hot damn, I love you guys!” The approval comes after a previous ruling by a Delaware judge in January nullified Musk’s initial $56 billion payment, citing concerns about the independence of Tesla’s board and the legitimacy of the process that led to the valuation.
The successful vote is seen as a victory for Musk and the Tesla board, who campaigned vigorously for the approval of the deal. It serves as a response to the judge’s earlier decision and may help bolster the argument that shareholders were adequately informed about the payment package and potential conflicts of interest before casting their votes.
Despite the approval, the battle may not be over yet. Legal challenges persist around the independence of the board and the fairness of the package, indicating that further disputes are likely. Additionally, new lawsuits could emerge, prolonging the legal saga and potentially bringing the case back to court.
In addition to the pay package approval, shareholders also voted to relocate Tesla’s legal headquarters from Delaware to Texas, adding another layer of complexity to any future legal proceedings. The original payment package for Musk was devised in 2017, with various stock options tied to specific company performance targets. While shareholders initially approved the package in 2018, legal challenges arose, alleging board misconduct and unfair treatment.
Judge Kathaleen McCormick’s ruling highlighted flaws in the board’s decision-making process and raised concerns about conflicts of interest within the board. Despite the criticism, Tesla’s board is expected to appeal the ruling and move forward with the approved payment package.
Overall, the shareholder approval of Elon Musk’s $45 billion pay package signals a significant milestone in the ongoing saga of Tesla’s executive compensation. As legal battles continue and challenges persist, the future remains uncertain, with potential implications for Musk, Tesla, and its shareholders.