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Tesla Shareholders Vote to Reinstate Elon Musk's $56 Billion Pay Package
At Tesla's annual meeting in Austin, Texas, shareholders voted to ratify CEO Elon Musk's 2018 pay package, which was previously worth up to $56 billion in Tesla stock. This decision comes five months after a Delaware judge rescinded the package, citing improper granting by the board.
The vote does not override the court's ruling but provides a significant public relations victory for Musk. It could also help his future efforts to sway the court to grant him performance options. Musk expressed his gratitude to shareholders, saying, "I love you guys."
Tesla shares rose 2.9% to close at $182.47 after Musk announced the proposal's approval on X. Despite this increase, the stock remains down 27% for the year, largely due to declining sales and increased competition in China.
The annual meeting featured votes on a dozen proxy proposals, including Musk's proposal to move Tesla's site of incorporation from Delaware to Texas. Shareholders approved this move, which aligns with the automaker's largest U.S. factory located in Texas.
Musk's predictions from the previous year's meeting, such as the economy picking up and the delivery of production Cybertrucks, have shown signs of improvement. Tesla held a Cybertruck deliveries event in late 2023 and has been actively advertising, including on X.
Original Article: https://www.cnbc.com/2024/06/13/tesla-shareholder-elon-musk-pay-package-at-annual-meeting.html
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