Sharesholders approve Musk's compensation plan.
In 2018, Tesla's shareholders endorsed Elon Musk's questionable equity deal. However, due to procedural mishaps, a court has declared it null and void. Now, it seems like the shareholders have nixed the multi-billion-dollar plan once more in the initial voting.
Elon Musk's road to a billion-dollar payday from Tesla appears more certain, based on his statements. Initial voting outcomes indicate that shareholders green-lighted the $56 billion (approximately €52 billion) plan, with a significant majority's approval, according to Musk's post on X. They also consented to moving the company's headquarters to Texas.
The entrepreneur shared a graph in his post that showcased the votes for the agendas exceeded the required majority line. With a grateful sentiment, he said, "Thank you for your support!" The official voting results will be announced at the annual meeting taking place on Thursday.
Although these outcomes are preliminary, shareholders have the opportunity to alter their votes until the polls close next week. Some significant shareholders and influential proxy advisors have voiced concerns about the compensation package. Its approval is seen as a symbol of investor faith. Tesla was waiting on Blackrock and Vanguard's input, two of the largest external shareholders, on Wednesday, sources told us.
The package was initially accepted in 2018 with 73% backing. Nonetheless, a Delaware court, once Tesla's headquarters, dismissed it. The court claimed the plan resulted from a faulty process within Tesla's Board and Musk wielded too much influence during the approval process. He could receive options on around 303 million shares if the compensation package is authorized, which would activate when Tesla meets specific market value, sales, and profit benchmarks.
