**Elon Musk’s Record-Breaking Pay Package Approved by Tesla Shareholders**
**Elon Musk Expresses Gratitude to Investors**
At Tesla’s annual meeting in Texas, Elon Musk expressed his gratitude to investors by saying, “I love you guys!” This sentiment was shared after Tesla shareholders voted to approve Musk’s record-breaking pay package, valued at approximately $48 billion at current share prices. Additionally, shareholders gave the green light for Tesla to relocate its state of incorporation from Delaware to Texas.
**Legal Battle Over Musk’s Compensation Package**
Earlier this year, Judge Kathaleen McCormick in Delaware struck down Musk’s $56 billion compensation package, citing concerns about Tesla’s board’s independence from Musk. However, despite the initial ruling, shareholders have re-approved the pay package, providing Tesla’s legal team with leverage to appeal the court’s decision. The recent vote may prompt Judge McCormick to reconsider her verdict, as shareholders have shown their support for Musk’s compensation.
**Importance of Approving the Pay Package**
Leading up to the vote, Tesla’s board emphasized the necessity of approving the pay package to keep Musk motivated and focused on Tesla amidst his other ventures. The original compensation package, challenged in 2018 by Tesla shareholder Richard Tornetta, consists of 12 tranches of stock options tied to growth targets for Tesla, all of which have been met. The value of Musk’s compensation fluctuates with Tesla’s stock price and was valued at over $60 billion in 2021.
**Implications of Shareholder Approval**
The recent shareholder approval of Elon Musk’s compensation package is expected to strengthen Tesla’s legal position in reinstating the pay plan. Business law attorney Natela Shenon believes that the shareholders’ support for the package invalidates the judge’s concerns about board independence and demonstrates shareholder approval.
In conclusion, Tesla shareholders have shown their overwhelming support for Elon Musk’s compensation package, paving the way for legal challenges to be resolved in favor of Musk and Tesla.
