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Tesla shareholders<\/a> have voted to both reapprove a pay package for CEO Elon Musk, initially valued at $56 billion, and to reincorporate the electric vehicle company in Texas.<\/p>\n The moves grant Musk substantial victories as he attempts to reassert control over Tesla<\/a>, with the final payout contingent on Tesla\u2019s share price.<\/p>\n The approval reflects the strong backing the 52-year-old billionaire receives from Tesla\u2019s retail investors, who often vocally support the billionaire. Despite resistance from some major institutional investors and proxy advisory firms, the proposal succeeded.<\/p>\n At Tesla\u2019s annual meeting in Austin, Texas, an excited Musk expressed his appreciation to the attendees: \u201cHot damn, I love you guys.\u201d<\/p>\n HOT DAMN I LOVE YOU GUYS! \u2665\ufe0f<\/p>\n \u4e00 Elon Musk pic.twitter.com\/mIt1fZ9Qi3<\/a><\/p>\n \u2014 DogeDesigner (@cb_doge) June 13, 2024<\/a><\/p>\n<\/blockquote>\n During the event, the CEO of X described his unwavering optimism, which he believes is essential to his achievements: \u201cIf I wasn\u2019t optimistic this wouldn\u2019t exist, this factory wouldn\u2019t exist,\u201d he declared, receiving applause. He added, \u201cBut I do deliver in the end. That\u2019s the important thing.\u201d<\/p>\n The pay deal is exceptionally lucrative, valued at over 3,000 times the annual earnings of the highest-paid US executive last year.<\/p>\n Despite the vote\u2019s outcome, its legal binding remains uncertain. Legal experts have indicated that it is unclear whether the court that initially blocked the deal will acknowledge the re-vote and reinstate the pay package. \u201cThe vote changes nothing,\u201d Mathieu Shapiro, managing partner at Obermayer Rebmann Maxwell & Hippel, told the BBC<\/a>, stating it only provides Tesla with a chance to seek a more favorable court decision.<\/p>\n Speaking to Reuters<\/a>, Brian Quinn, a law professor at Boston College, noted, \u201cThis thing is not over.\u201d He explained that Delaware judge Kathaleen McCormick<\/a> would thoroughly examine the vote to ensure it was not influenced by coercion or improper pressures from Musk, saying that Tesla\u2019s board was criticized by the judge for being overly dependent on Musk, influenced by close personal and financial relationships.<\/p>\n As a \u201cparting gift\u201d to Delaware following the decision, Musk posted a picture on X of a cake with the words \u201cVox Populi, Vox Dei,\u201d which means \u201cthe voice of the people is the voice of God.\u201d<\/p>\n Sending this cake to Delaware as a parting gift \ud83d\ude18 pic.twitter.com\/uLKE7LDSCW<\/a><\/p>\n \u2014 Elon Musk (@elonmusk) June 14, 2024<\/a><\/p>\n<\/blockquote>\n Tesla Chair Robyn Denholm\u2019s credibility was at stake following criticism from Judge McCormick, who described<\/a> her oversight as \u201clackadaisical\u201d and characterized the board\u2019s behavior as that of \u201csupine servants of an overweening master\u201d<\/p>\n Musk and Denholm framed the shareholder votes as pivotal for Musk\u2019s continuation with the company. Ivan Frishberg, chief sustainability officer at Amalgamated Bank, also told Reuters, \u201cElon Musk and Chair (Robyn) Denholm have made this about CEO loyalty and presented the votes as a decision about whether the company can keep Musk.<\/p>\n \u201cThat is a lot of pressure but it doesn\u2019t change the fact that good governance is good for the bottom line of a company, and the Tesla board is consistently and clearly deficient on that front.\u201d<\/p>\n In recent months, Denholm has been actively involved in shareholder communications, reiterating the theme \u201ca deal is a deal\u201d. She argued that Musk had met the \u201cludicrously ambitious\u201d share price and financial milestones set in his original 2018 compensation package.<\/p>\n A deal is a deal. And he created tremendous value \u2013 over $735 billion \u2013 for $TSLA<\/a> stockholders along the way. \u2014 Tesla (@Tesla) June 10, 2024<\/a><\/p>\n<\/blockquote>\n\n
Will the courts still block Elon Musk from his Tesla pay package?<\/h2>\n
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Tesla C-suite criticized by Delaware judge<\/h2>\n
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\u00a0@elonmusk<\/a> transformed Tesla from a loss-making company to a company that\u2019s changing the world. <\/p>\n
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Elon upheld his end of the bargain; it is time to uphold ours.\u2026 https:\/\/t.co\/Bk3QEi7b4g<\/a><\/p>\n