According to U.Today, Tesla shareholders have given their overwhelming approval for a $56 billion remuneration package for CEO Elon Musk. The shareholders also voted in favor of relocating the electric vehicle manufacturer's legal domicile to Texas. Musk acknowledged the resolutions on social media, highlighting the broad approval margin.
The substantial endorsement of Musk’s pay package, the largest in U.S. corporate history, is expected to alleviate investor worries about Musk's future with Tesla. This approval also strengthens Tesla's position in its ongoing legal fight to overturn a previous court ruling that invalidated the pay package. Despite this significant vote, Musk still faces a lengthy legal battle. A Delaware judge had previously claimed that the Tesla board was 'beholden' to Musk, a claim that the company must refute. Moreover, the approval could potentially instigate new lawsuits related to the vote.
The final results of the shareholder meeting will be announced at Tesla's headquarters in Texas at 4:30 p.m. on Thursday. Charles Hoskinson, the founder of Cardano (ADA), responded to Musk’s tweet, criticizing the Delaware judge's previous decision. Hoskinson tweeted that a supermajority of the owners had approved the pay package that was taken away by a judge in Delaware. He criticized the judge for wanting to hand over $5 billion of shareholder money to lawyers representing a person with just nine shares of Tesla stock and advised never to incorporate in Delaware.
Hoskinson's comment underscores the controversy surrounding the court's ruling and the broader implications for corporate governance and incorporation. The Cardano founder’s strong reaction indicates the tension between Tesla’s leadership and judicial oversight, reflecting a sentiment that may resonate with other corporate leaders and shareholders. This incident adds another dimension to the ongoing saga of Elon Musk’s leadership at Tesla, characterized by his ambitious pay package and the strategic shift of Tesla’s legal domicile. As the company navigates these legal challenges, the outcome of the shareholder vote signals strong support for Musk's vision and strategy for Tesla’s future.