Elon Musk: 1
Delaware Court: 0.
“In a remarkable show of support, Tesla shareholders have ratified CEO Elon Musk’s colossal 2018 pay package, which was originally valued at up to $56 billion in Tesla stock. This vote, coming just five months after a Delaware judge ordered the package to be rescinded, underscores the complicated and contentious nature of Musk’s compensation and leadership.” (source)
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Following the announcement of the preliminary voting results, Musk took the stage with characteristic exuberance. “I just want to start off by saying hot d—! I love you guys,” he exclaimed, reflecting the palpable support from shareholders.
The vote came on the heels of a tumultuous year for Tesla. The company’s stock, despite a recent 2.9% uptick, remains down 27% for the year. Tesla is grappling with declining sales due to an aging lineup of electric vehicles and intensified competition in China.
The annual meeting also included votes on several other proposals, notably Musk’s initiative to move Tesla’s site of incorporation from Delaware to Texas. Shareholders approved the relocation, aligning the company’s legal base with its largest U.S. factory.
Congrats Musk – a labourer deserves his wage. You delivered the numbers which no human believed was possible. While I am against abnormal executive compensation, but on this one, it is not on you. Tesla was worth nothing when they made the deal, and because it was made, it should be taken to the conclusion. A court has no role to play here.
Indeed, there are many companies which will want their CEOs to take them from $45 billion to $800 billion in three years so that they can pay the CEO $56 billion. Yet, I concede that it could be done without the huge payment. Nonetheless, for the fact that it was agreed upon, it must be paid! The shareholders did the right thing by reaffirming it.
Tesla Shareholders Reaffirm Elon Musk’s $56 Billion Pay Package
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