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Elon Musk says Tesla shareholders voted to restore his compensation deal

Elon Musk says Tesla shareholders voted to restore his compensation deal

Top line

Tesla CEO Elon Musk said on Wednesday evening that the company’s shareholders had voted to reinstate the massive 2018 compensation deal — valued at nearly $50 billion — months after it was invalidated by a Delaware judge.

Key facts

in mail On Day

The post included a graph showing that both measures had already received far more votes than were needed to secure their passage.

Musk has also led the push to change Tesla’s state of incorporation from Delaware to Texas after he held a “public vote” on his X account.

Musk thanked Tesla shareholders and many of his supporters for X and even He answered in the affirmative When one of his followers said: “We gave you options, now you have to make Tesla the most valuable company on Earth.”

Tesla shares rose 0.46% to $178.10 in premarket trading early Thursday.

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Critical quote

Texas Governor Greg Abbott congratulated Musk in a letter Share X “Congratulations, Elon, on getting the salary you were promised and on your new founding in Texas,” he said. “Welcome to a state that has no personal or corporate income tax.”

What you should pay attention to

Although the shareholder vote was in Musk’s favor, it does not immediately overturn Delaware District Court Judge Kathleen McCormick’s ruling in January. The company even admitted in its security filings that an affirmative vote may not solve the bonus issue. However, Tesla could use the vote result to signal to the judge that Musk’s pay package has broad shareholder support. according to Reuters Tesla shareholder Donald Paul has already filed a legal challenge against the vote. In his lawsuit, Paul accuses Musk of using “force and coercion tactics” to get his desired outcome in the vote.

Main background

In January, McCormick invalidated Musk’s record $50 billion pay package in a lawsuit brought by a Tesla shareholder. The plaintiff argued that the massive pay package was unfair to shareholders and that Tesla’s board of directors had failed in its fiduciary duty in approving it. Musk objected to the ruling and criticized the state of Delaware saying: “Never incorporate your company in Delaware.” Musk then announced plans to hold a shareholder vote to move the company’s state of incorporation to Texas.

the shadow

If the pay package passes all legal hurdles, it could boost Musk’s shares in Tesla from 13% to 22%. This would see the billionaire close his claim to control 25% of the company’s voting power. Musk said he was “uncomfortable with Tesla becoming a leader in artificial intelligence and robotics” without having about 25% of the company’s voting power. The billionaire said that obtaining less than 15% of power means “seizing suspicious interests.” [was]

“Very easy” and if his request is not met he would “rather build products” outside of Tesla. Since then, Musk’s AI startup XAI has raised $6 billion in funding at a pre-fund valuation of $18 billion.

Forbes rating

According to our estimates, Musk’s current net worth is $209.8 billion, making him the richest person in the world. The top spot on Forbes’ real-time billionaires ranking has changed hands several times in the past few weeks, jumping between Musk and LVMH CEO Bernard Arnault.

In-depth reading

Tesla Shareholders to Vote on Elon Musk’s $50 Billion Pay Package Next Week – Here’s What’s at Stake (Forbes)

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