Tesla shareholders approved Elon Musk’s multimillion-dollar pay package.
The package is now worth $44bn (£34bn). The package was once worth $56bn (£44bn), but its value has declined along with Tesla shares.
The proposal was approved despite opposition from some large institutional investors and proxy companies.
On stage at the annual shareholder meeting in Austin, Texasthe billionaire described himself as “pathologically optimistic.”
“If I were not optimistic this would not exist, this factory would not exist.” Musk he said to loud applause.
“But in the end I give it. That’s the important thing.”
However, the approval does not resolve a dispute over the salary package in a Delaware court, which some legal experts believe could last months.
Judge invalidated it in Januarycalling it “unfathomable.”
Musk could also face new lawsuits over the deal, which would be the largest in American corporate history.
Shareholders first approved the extraordinary pay package in 2018.
“This is not over,” said Brian Quinn, a professor at Boston College Law School.
The Delaware judge will examine the vote and demand tesla to demonstrate that the process was not coerced or unduly influenced by Musk, Professor Quinn said.
A general view of the Tesla gigafactory in Austin, Texas, US, February 28, 2023 Photo: Reuters
The judge had criticized Tesla’s board for being “beholden” to Musk, saying the plan was proposed by a “conflicted board” with “close personal and financial ties” to its top executive.
Shareholders also approved a proposal to move the company’s legal domicile to Texas from Delaware.
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They also backed other proposals, including the re-election of two board members, Musk’s brother Kimbal Musk and James Murdoch, son of media mogul Rupert Murdoch.
Shareholders increased the level of investor control by approving proposals in favor of shortening board terms to one year and reducing voting requirements for proposals to a simple majority, despite board opposition to both.
Tesla did not disclose the vote count, which is expected to be revealed in the coming days.
At least half a million viewers watched the meeting livestreamed on X, which is also owned by Musk, and around 40,000 watched it on YouTube.
Tesla’s stock price has fallen about 55% from its 2021 peak as electric vehicle sales have slowed.
The stock closed up 2.9% on Thursday.
This story originally appeared on News.sky.com read the full story
