Elon Musk has the backing of not only his employees, but his shareholders. The government needs to stop attacking the man. Biden and the Democrats are doing all they can to hurt Musk at every level now.
Tesla shareholders recently voted to approve a substantial $56 billion compensation package for CEO Elon Musk, marking a pivotal moment in corporate governance. Additionally, they voted in favor of relocating the electric vehicle maker’s legal domicile from Delaware to Texas. This significant approval comes despite the controversy and challenges surrounding Musk’s leadership and the potential dilution of shareholder value.
Tesla shareholders will vote on Elon Musk’s proposed $56 billion pay package—the highest-ever executive compensation package in history. https://t.co/SS6L7N2zdF pic.twitter.com/FyYabJ5Els
— FORTUNE (@FortuneMagazine) June 12, 2024
Musk expressed his gratitude on social media, acknowledging the strong support from Tesla’s investors. This approval could potentially stabilize concerns regarding Musk’s ongoing involvement with Tesla, as it provides him with a formidable endorsement amidst a fluctuating period for the company, characterized by recent declines in sales, profits, and stock value.
The vote, however, does not end the controversy surrounding the compensation package. A Delaware judge previously ruled that the Tesla board was excessively influenced by Musk, which casts doubt on the validity of their decisions. This legal stance challenges the recent shareholder endorsement, suggesting that the courts might not accept the shareholder vote as a resolution to the ongoing legal disputes.
$TSLA Investor: Pay Package Vote a ‘Referendum on Elon’
• Institutional investors are split on Tesla CEO Elon Musk’s $56 billion pay package, with some against it due to poor company performance under his leadership.
• Tesla’s stock has recently faltered despite earlier… pic.twitter.com/smjswsk7Nt
— Herbert Ong (@herbertong) June 12, 2024
Adding to the complexity, major investment advisory firms and some large investors, including Norway’s sovereign wealth pension fund, recommended against the approval of the package. These entities cited concerns over the governance practices and the excessive focus on Musk at the potential expense of broader shareholder interests.
The shareholder meeting also included votes on other significant matters such as the re-election of board members and the relocation of Tesla’s legal headquarters to Texas—a move praised by Texas Governor Greg Abbott, who highlighted the state’s tax advantages.
The real story behind the $56 billion pay package for Elon Musk that #Tesla shareholders will vote on this week. pic.twitter.com/sbR2wTSGSX
— Investopedia (@Investopedia) June 12, 2024
Major Points:
- Tesla shareholders approved a $56 billion compensation package for CEO Elon Musk and voted to relocate the company’s legal headquarters from Delaware to Texas.
- The approval may stabilize concerns about Musk’s commitment to Tesla, despite his involvement with multiple companies and recent stock sales to fund other ventures.
- The compensation package faces legal challenges, with a Delaware judge previously ruling that the Tesla board was overly influenced by Musk, questioning the validity of their decisions.
- Major advisory firms and some significant investors had recommended against the compensation package, citing governance concerns and potential shareholder value dilution.
- The legal battle over the pay package continues, with the case potentially advancing to Delaware’s Supreme Court, highlighting ongoing governance and leadership challenges at Tesla.
Susan Guglielmo – Reprinted with permission of Whatfinger News
