Tesla shareholders voted to pay Elon Musk $56 billion


Tesla shareholders voted to approve Elon Musk's $56 billion pay package and move the electric car maker's legal address to Texas. This was announced by the company's general director on social networks. write agency Reuters.

"Thank you for your support!"? Musk said in his post on X.

Overwhelming shareholder approval of the largest bonus terms in U.S. corporate history could ease investor concerns about Musk's future at the company and give the electric car maker a boost in its fight to overturn a court order voiding the pay package.

"Even if shareholders approve the old package, it's unclear whether a Delaware court will recognize that vote as valid." said Adam Badawi, a law professor at the University of California, Berkeley.

The result will be announced at a meeting at Tesla headquarters in Texas at 16:30 (21:30 GMT).

A combination of votes from large institutional investors and retail investors favored the yes over the no vote, a person familiar with the preliminary results of the vote said.

Major trust firms Glass Lewis and Institutional Shareholder Services (ISS) urged shareholders to reject the pay package, while major investors, including Norway's sovereign wealth fund, said they would vote against it.

Shareholders can change their decision before the start of the annual meeting.

Tesla shareholders are also voting on other proposals, including moving its corporate headquarters from Delaware to Texas, and re-electing two board members: Elon Musk's brother Kimbal Musk and James Murdoch.

A bonus totaling $56 billion from Tesla was approved by Musk in 2018. It was the largest compensation package from a public company in history.

The reward consisted of 12 tranches of options on Tesla shares, which were to go to Musk on the condition that the capitalization of the automaker increases by $50 billion, and the company itself achieves certain revenue goals.

However, in the same year, Tesla shareholder Richard Tornetta demanded that the bonus be canceled, considering it unfair. Tornetta filed a corresponding lawsuit in court. A large investor, the pension fund California State Teachers' Retirement System (CalSTRS), also criticized the deal.

As Business Insider writes, growing problems with Tesla's business have dealt a serious blow to Elon Musk's capital. If in November 2021, Musk took first place in the ranking of Bloomberg billionaires with a fortune of $340 billion, then at the time of closing of trading on April 16, 2024, the billionaire's assets were valued at "only" $178 billion. 2021%. According to the results of trading on April 415, the shares were already worth 62 dollars per piece.

In December 2023, Tesla had just under 140,5 employees, CNBC noted. In general, since the beginning of the year, Tesla shares have fallen in price by 36,77%. In trading on Wednesday, April 17, quotations fell by 1,38% to $154,95.

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