Tesla Shareholders Approved my $56 Bn Pay Package: Musk

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Tesla shareholders are voting on a $56 billion pay package for Elon Musk and relocating the electric vehicle maker’s legal home to Texas. Musk announced on social media that the votes are passing by wide margins. “Thanks for your support!!” Musk posted on X.

Overwhelming approval of the largest remuneration package in U.S. corporate history could ease investor concerns about Musk’s future at Tesla and strengthen the company’s position as it seeks to overturn a court decision that voided the pay package. However, Musk may still face a lengthy legal battle to convince the Delaware judge who previously said the Tesla board was “beholden” to him and could encounter new lawsuits over the recent vote.

“Even if the shareholders approve the old package, it is not clear that the Delaware court will allow that vote to be effective,” said Adam Badawi, a law professor at UC Berkeley.

The final results will be announced at a meeting at Tesla’s Texas headquarters at 4:30 pm (2130 GMT) on Thursday.

A source familiar with the preliminary vote count said a combination of large institutional investors and retail investors ensured a ‘yes’ vote. Despite opposition from major proxy firms Glass Lewis and Institutional Shareholder Services (ISS), as well as significant investors like Norway’s sovereign wealth fund, the pay package appears set for approval.

Shareholders are allowed to change their vote up until the start of the annual meeting.

In addition to the pay package, shareholders voted on relocating Tesla’s legal headquarters from Delaware to Texas and re-electing board members Kimbal Musk and James Murdoch.

Texas Governor Greg Abbott congratulated Musk on X, saying, “Welcome to a state that has neither a personal nor a corporate income tax.”

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