Tesla shareholders have approved a $56 billion pay package for CEO Elon Musk, despite a previous court ruling that voided the package. The decision, which also includes a move to relocate Tesla’s legal home to Texas, could strengthen the company's position in appealing the court decision.
The approval came with the support of both major institutional and retail investors, despite opposition from influential proxy firms and large investors. However, a Delaware court still needs to decide if the re-vote will stand.
Musk's pay package approval doesn't end the legal challenges. A Delaware judge had earlier voided the 2018 pay plan, citing that Tesla’s board was too closely tied to Musk. The board defended the package, stating it is necessary to keep Musk dedicated to Tesla.
The approval of Musk’s pay package has sparked mixed reactions among investors. Some view it as a necessary step to retain a visionary leader, while others are concerned about the dilution of value for other shareholders.
The approval of Musk’s pay package marks a significant moment for Tesla, demonstrating strong shareholder support for Musk despite ongoing legal battles and opposition. However, the future remains uncertain as Musk will have to navigate the complexities of the legal system to secure his pay package.