United States: Elon Musk’s record-breaking pay package and the company’s intention to relocate its legal headquarters to Texas were approved by Tesla shareholders.
The multibillionaire, who had fought tenaciously for the payoff, which is valued at much to $56 billion depending on the price of Tesla shares, has won.
He exclaimed, “Hot damn, I love you guys,” to an ecstatic group of shareholders who had assembled in Texas for the annual meeting of the company.
The staggering amount had drawn criticism and concerns about the company’s board being overly obedient and close to Musk.
The vote is not legally binding, and legal experts have expressed uncertainty over whether the court that stopped the transaction will accept the results of the re-vote and permit the business to reinstate the compensation package.
After a Delaware judge, where the company is presently established, revoked Musk’s compensation package and sided with a tiny investor who had sued over the agreement, Musk declared his intention to relocate the firm’s legal headquarters to Texas.
At a time when Tesla’s share price has dropped from its peak and its standing in the electric car market is under threat, the dispute over the plan has raised questions about Musk’s leadership.
However, Musk mobilized his supporters to back the acquisition, winning over individual investors in particular who account for an exceptionally high percentage of the company’s shareholder base.
The vote margin was not immediately made public by the firm. In an announcement on his social media platform, X—formerly known as Twitter—Musk gave a sneak peek at the outcomes.
Following Musk’s announcement, the company’s shares closed over 3 percent higher. According to the pay plan, if the company reaches milestones that were previously thought to be impossible, such as becoming a $650 billion company, Musk will be entitled to around 300 million shares, or 10 percent of the company.
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