Tesla Shareholders Vote to Reinstate Elon Musk’s $56 Billion Pay Package

 

In a major victory for Elon Musk, Tesla shareholders have voted to reinstate his controversial $56 billion pay package. The package, which was previously struck down by a Delaware court, is one of the largest CEO compensation packages in history.

The vote took place at Tesla's annual shareholder meeting in Austin, Texas, and was met with cheers and applause from the crowd. Musk, who was in attendance, expressed his gratitude to the shareholders, saying "Hot damn, I love you guys."

Despite the vote, the pay package is still subject to court approval. Earlier this year, a Delaware judge ruled that the package was "unfair" and that Tesla's board had been "beholden" to Musk. The judge also criticized the board for not fully disclosing Musk's control over the process of constructing the pay package.

Musk has been a vocal critic of the Delaware court system, and has threatened to move Tesla's legal headquarters to Texas. The company has already taken steps to reincorporate in Texas, which is seen as a more business-friendly state.

The pay package, which was approved by shareholders in 2018, grants Musk approximately 300 million shares, or around a 10% stake in the company. The package is tied to Musk's performance, and he must meet certain benchmarks in order to receive the full amount.

Some institutional investors have expressed concerns about the size of the pay package, and have argued that it is excessive. However, many individual investors have rallied around Musk, and see him as a visionary leader who has transformed the electric vehicle industry.

The vote is seen as a major endorsement of Musk's leadership, and is likely to give him more leverage in his ongoing legal battles. Musk has been facing scrutiny over his leadership style and his use of Twitter, where he has made controversial statements about the company and its investors.

Despite the challenges, Musk remains one of the most successful CEOs in the tech industry, and his net worth is estimated to be over $200 billion. Tesla's stock price has been volatile in recent months, but the company remains one of the most valuable in the world.

In a statement, Musk said "I am thrilled that our shareholders have once again shown their support for my leadership and vision. I am committed to continuing to work tirelessly to make Tesla the most successful company in the world."

The vote is a major victory for Musk, and is likely to be seen as a major endorsement of his leadership. However, the legal battle over the pay package is far from over, and it remains to be seen whether the court will ultimately approve the package.