Tesla shareholders voted Thursday to reinstate X’s massive $56 billion salary package after a Delaware court had halted it in January. Musk also won approval from shareholders to move the corporate headquarters of the company to Texas where it has its biggest factory. Tesla shares rose 2.9 percent in response to the news.
Musk was thrilled after the vote. I’d be too if I learned I could make $56 billion.
Although his fight will continue, it’s not clear if he will receive the money.
The fight for the $56 billion hasn’t ended. The Delaware judge, who in January ruled against Musk’s compensation, will likely be asked to decide whether the most recent shareholder vote was fair according to the state’s laws. Last week, another Tesla shareholder than the one who was involved in the first case filed a lawsuit, arguing the second vote should not be allowed to stand.
Texas Gov. Gregg Abbott welcomes him to the state.
Elon Musk dance is 🔥. Tesla shareholders have spoken. pic.twitter.com/GiLWOtt8ZI
— Tesla Owners Silicon Valley (@teslaownersSV) June 13, 2024
The judge had previously ruled the compensation, which consisted of stock options linked to Tesla meeting various performance benchmarks was excessive.
The compensation package had previously been worth up to $56 billion of Tesla stock. A Delaware court described the pay as “unfathomable” in January. Judge Kathaleen McCormick said that Tesla’s directors lacked independence, did not properly negotiate with Musk at a distance, and failed to provide shareholders with all the information before asking for their vote.
Musk, who was clearly pumped up, told his shareholders that he loved them.
Congrats Elon on getting the pay you were promised and on your new incorporation in Texas.
Welcome to a state that has neither a personal nor a corporate income tax. https://t.co/HOKd9oOcFA
— Greg Abbott (@GregAbbott_TX) June 13, 2024
The fact that he’s not in a financial bind is reflected by his net worth, which currently stands at about $207 billion. However, the position can change depending on the day, as Jeff Bezos, the founder of Amazon, or French businessman Bernard Arnault could take it.
Tesla’s recent sales of electric vehicles have been slowed due to a lower demand. Although this is good news, it has not always been smooth sailing for Musk. As mentioned, the stock rose almost three percent on Thursday. However, it is still down by 27 percent for this year.
Tesla stock is crashing as demand for electric vehicles plummets
Elon Musk must be a good person.
