Tesla's stockholders endorse multi-billion dollar compensation plan for Elon Musk.
The judge in Delaware, where Tesla is headquartered, called the compensation package for Musk illegal at the end of January. She critiqued, among other issues, misleading information given to shareholders by the board about the package. In April, the board decided to revisit the matter at the shareholders' meeting.
The compensation plan for Musk was greenlighted by the board in 2018 and was also approved by the shareholders at the time. It involved the CEO receiving stocks as remuneration when specific company milestones were accomplished within ten years. Initial calculations estimated the value of this plan to be $56 billion (approximately €52 billion today).
The shareholders' meeting in Austin was subsequently deemed pivotal for the company's future. Speculation surrounded the hypothesis that multibillionaire Musk may relinquish his role as CEO or decrease involvement in the organization if his compensation package were rejected.
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Despite the judge's ruling in Delaware, Tesla shareholders endorsed Elon Musk's multi-billion dollar salary package during the Annual General Meeting in Austin. The board's decision to reinstate the controversial package sparked debate among shareholders, with some raising concerns about the transparency of the salary package's initial presentation. Elon Musk, with billions in Tesla shares, played a significant role in the vote, as shareholders weighed the potential impact of rejecting the compensation plan on the company's future. Despite the controversy, Tesla continues to operate and face new challenges, further highlighting Musk's role as the company's CEO.
