{"id":53102,"date":"2024-06-14T07:02:58","date_gmt":"2024-06-14T07:02:58","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/index.php\/2024\/06\/14\/tesla-investors-back-record-breaking-musk-pay-deal\/"},"modified":"2024-06-14T07:02:58","modified_gmt":"2024-06-14T07:02:58","slug":"tesla-investors-back-record-breaking-musk-pay-deal","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/tesla-investors-back-record-breaking-musk-pay-deal\/","title":{"rendered":"Tesla investors back record-breaking Musk pay deal"},"content":{"rendered":"
\n

Tesla shareholders have backed a record-breaking pay package for boss Elon Musk and approved a plan to move the firm\u2019s legal headquarters to Texas.<\/strong><\/p>\n

The results are a victory for the multi-billionaire, who had campaigned fiercely for the payout, which is worth up to $56bn (\u00a343.9bn) \u2013 the exact amount depends on the Tesla share price.<\/p>\n

\u201cHot damn, I love you guys,\u201d he told a crowd of enthusiastic shareholders who had gathered in Texas for the firm\u2019s annual meeting.<\/p>\n

The eye-popping sum had sparked criticism and raised concerns that the board of the company was too submissive and close to Mr Musk.<\/p>\n

However, the vote is not binding and legal experts have said it is not clear if a court that blocked the deal will accept the re-vote and allow the company to restore the pay package.<\/p>\n

\u201cThe vote changes nothing,\u201d said Mathieu Shapiro, a managing partner at law firm Obermayer Rebmann Maxwell & Hippel.<\/p>\n

\u201cIt only offers Tesla opportunities to try to use the vote to obtain a better decision going forward,\u201d he added.<\/p>\n

Mr Musk announced that he wanted to move the firm\u2019s legal headquarters to Texas after a judge in Delaware, where it is currently incorporated, voided his pay package, siding with a small investor who had sued over the deal.<\/p>\n

The fight over the plan had aired concerns about Mr Musk\u2019s leadership, at a time when Tesla\u2019s share price has fallen from its height and its position in the electric car industry is under pressure.<\/p>\n

But Mr Musk rallied his fan base in support of the deal, appealing particularly to individual investors, who make up an unusually large portion of the firm\u2019s shareholder base.<\/p>\n

\u201cIt\u2019s a pretty ringing endorsement,\u201d said car industry analyst Karl Brauer.<\/p>\n

Mr Musk got more than enough shareholder support \u201cto justify the package,\u201d he added.<\/p>\n

The company did not immediately disclose the margin of the vote.<\/p>\n

Mr Musk had previewed the results in a post on his social media company, X, formerly known as Twitter.<\/p>\n

Shares in the company closed up nearly 3% after Mr Musk\u2019s announcement.<\/p>\n

The compensation plan gives Mr Musk rights to roughly 300 million shares \u2013 a roughly 10% stake in the firm \u2013 as a reward for the firm meeting goals once considered unfeasible, like becoming a $650bn firm.<\/p>\n

\u201cMy understanding is that there\u2019s been about 1,100% appreciation in Tesla stock. And that\u2019s pretty, pretty impressive. Most chief executives have never done anything like that,\u201d said Mr Brauer.<\/p>\n

In the ruling earlier this year, Judge Kathaleen McCormick ruled the sum was \u201cunfair\u201d and the process for determining the package, by a board dominated by Mr Musk, was \u201cdeeply flawed\u201d.<\/p>\n

Tesla called the decision \u201cfundamentally unfair, and inconsistent with the will of the stockholders\u201d.<\/p>\n

The company then submitted the deal to another vote \u2013 and asked its shareholders to back a plan to reincorporate the company outside the state of Delaware.<\/p>\n

\u201cIt will be interesting to see if another court is willing to credit a vote taken after the trial court\u2019s decision,\u201d noted Mr Shapiro.<\/p>\n

The board said Mr Musk deserved the package because Tesla achieved its ambitious targets under his leadership and that it was necessary to ensure he remains dedicated to the company.<\/p>\n

Tesla executives also expressed support for the package in social media posts, saying that Mr Musk is crucial to the company\u2019s success.<\/p>\n

Meanwhile, Mr Musk promised a personal tour of Tesla\u2019s factory in Texas to some shareholders who cast votes.<\/p>\n

The package \u2013 worth an estimated 300 times what the top-earning boss in the US made last year \u2013 won backing from 73% of shareholders who voted six years ago.<\/p>\n

Shareholders also approved the re-election of two board members at the meeting on Thursday: James Murdoch, the son of media tycoon Rupert Murdoch, and Mr Musk\u2019s brother Kimbal Musk.<\/p>\n<\/div>\n

The post Tesla investors back record-breaking Musk pay deal<\/a> first appeared on KBC<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Tesla shareholders have backed a record-breaking pay package for boss Elon Musk and approved a plan to move the firm\u2019s legal headquarters to Texas. The results are a victory for the multi-billionaire, who had campaigned fiercely for the payout, which is worth up to $56bn (\u00a343.9bn) \u2013 the exact amount depends on the Tesla share […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-53102","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/53102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=53102"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/53102\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=53102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=53102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=53102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}