Tesla shareholders approve Elon Musk’s salary package rejected by court

Tesla shareholders re-approved a controversial multimillion-dollar pay package for CEO Elon Musk on Thursday.

The 2018 compensation agreement, now worth more than $45 million, was voided by a Delaware judge in January. While Thursday’s vote affirms shareholder support for the pay package, it does not resolve the legal challenge.

Chancery Judge Kathaleen McCormick concluded that the package — which granted Musk a 1% stake in the company for each of 12 milestones ultimately achieved — was not negotiated fairly.

Tesla’s board has urged shareholders to once again approve Musk’s pay package in recent weeks.

“We do not agree with what the Delaware Court decided and we do not think that what the Delaware Court said is how corporate law should or works,” board chairwoman Robyn Denholm wrote in a letter to shareholders.

“So we are coming to you now so you can help resolve this issue – which is a fundamental issue of fairness and respect for our CEO,” she continued. “You have a chance to reinstate your vote and make it count.”

The approval of the pay package, as well as Tesla’s reincorporation in Texas, were met with applause at the company’s annual shareholder meeting on Thursday.

Musk predicted the results of both votes on Wednesday night, announcing on his social media platform X that both passed with “wide margins.”

“Thank you for your support,” he added.

This story originally appeared on thehill.com read the full story