Tesla shareholders have endorsed a record-breaking pay package for CEO Elon Musk, valued at up to $56 billion (£43.9 billion). The approval came during the firm’s annual meeting in Texas, where Musk expressed his gratitude, saying, “Hot damn, I love you guys,” to the enthusiastic crowd of shareholders.
Legal Headquarters Move to Texas
In addition to the pay deal, shareholders also approved a plan to relocate Tesla’s legal headquarters to Texas. This move is part of the company’s ongoing strategic adjustments.
Previous Legal Hurdles
Earlier this year, a judge in Delaware blocked the compensation package, citing concerns over its fairness to shareholders. Despite the shareholders’ recent vote in favor, the approval is not binding, and legal experts remain uncertain whether the court that initially blocked the deal will accept the re-vote and allow the pay package to be reinstated.
Implications of the Vote
The vote represents a significant victory for Musk, who actively campaigned for the substantial payout. The exact amount he will receive is contingent on Tesla’s stock performance, highlighting the high-stakes nature of the compensation plan. However, the final decision rests with the court, which will determine the ultimate fate of the pay package.
