Musk shifts into fourth gear: Tesla shareholders approve his mega salary
With the vote underway, Musk is already toasting his X and claims to have received a double "yes" on the salary and on Tesla's escape from Delaware
In the end, Elon Musk won. Tesla shareholders are voting in favor of a $56 billion payout over 10 years for the electric car company's CEO.
VOTING IN PROGRESS MUSK BRINDA
This is said by Tesla's owner himself, announcing, even a little irregularly, that there would be "wide margins" for a favorable conclusion well before the end of the consultation. “Both Tesla shareholder resolutions are passing by wide margins!” he exclaimed on his X.
Both Tesla shareholder resolutions are currently passing by wide margins!
Thanks for your support!!
— Elon Musk (@elonmusk) June 13, 2024
The reference is to the requests which include, in addition to the approval of his multi-billion dollar salary package, also the move of Tesla's headquarters from Delaware to Texas.
A JUDGE GOT IN THE MIDDLE
Precisely in Delaware, a judge, Kathaleen St. Jude McCormick , at the beginning of the year had agreed with a group of investors who had considered that compensation excessive and obtained unfairly, or by putting pressure on a Board of Directors which, according to the court, would not have been truly independent of the entrepreneur. Thus, the decision taken in 2018 that would make Musk the highest paid CEO of a listed company was frozen.
As the Financial Times explains, credence was given to accusations that Musk, despite controlling 22% of the company, exploited his cumbersome personality to gain a disproportionate remuneration package to his advantage. Should the sentence be confirmed and become final, the CEO could lose shares, which would drop to 13% of Tesla.
ESCAPE FROM DELAWARE
And the second decision of the day, that of leaving Delaware, is precisely connected to the need not to get entangled in a state where there is a potential obstacle to his ten-year mega salary. Having won the battle with the shareholders, Musk will now have to win the war in court.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/musk-ingrana-la-quarta-gli-azionisti-di-tesla-approvano-il-suo-mega-stipendio/ on Thu, 13 Jun 2024 14:17:47 +0000.