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Tesla: “Yes” of shareholders to the astronomical remuneration of Musk

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Tesla: «Ναι» των μ&epsilon ;των στητρομικor αμοιβ ;ου Μασκ

The compensation package, the largest in American history, had been blocked by court order.

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Elon Musk appears to have secured the support of Tesla shareholders in order to convince a court that he is entitled to a $56 billion compensation package, the largest in US history.

A Delaware court where Tesla is based had blocked the “astronomical” pay on the grounds that the board that approved it had financial and personal ties to Musk.

The court may be persuaded to accept the billionaire's appeal after a vote on Wednesday among shareholders, where the compensation package was approved by a wide margin, as Musk reported on X.

“Thank you for your support!!” he wrote in his post.

Still, Musk faces a months-long battle to convince the court if he succeeds. package, it's not clear that the Delaware court will accept the vote,” Adam Badavi, a law professor at the University of California, Berkeley, told Reuters.

Major Tesla investors, including Norway's sovereign wealth fund, had earlier said they would vote against Musk's request.

Other investors saw the result as a vote of confidence in Musk, who is undoubtedly the driving force strength of Tesla, but the company has been seeing declining sales and revenue lately.

The company's stock has lost nearly 60% of its value since its peak in 2021, so Musk began to sell billions in stock to finance the Twitter buyout.

He now heads six companies, including SpaceX, X and artificial intelligence startup xAI, and some investors believe he is not devoting enough time to Tesla.

The board that approved the package said Musk deserves the fee for hitting Tesla's projected stock market value, revenue and profitability goals.

Musk has even threatened to continue developing AI and robotics products outside of Tesla if the company doesn't increase power of his vote, which can only be done if the compensation package is approved.

The eccentric billionaire said he was outraged by Delaware's legal framework and said he plans to move the company's headquarters to Texas.

In Wednesday's vote, shareholders approved the move, Musk said.

Texas Governor Greg Abbott did not hide his delight: “Welcome to a state that doesn't even have a corporate nor personal income tax” he wrote to X.

source: in.gr

Source: 24h.com.cy

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