Elon Musk he did it! The founder and CEO of Tesla is preparing to become the highest paid CEO in history thanks toapproval by shareholders of the gigantic stock-based compensation package. The Tesla shareholders' meeting has, in fact, voted in favor of the package with an original value of 56 billion dollars, which today, due to the decline in Tesla shares during the year (-25%) has fallen to approximately 44,9 billion dollars.
It had been the same Musk to anticipate the official results announcing his victory "by wide margins" on X, sharing the graphs on the preliminary results of the vote. The details of the vote were not immediately revealed, but they represent a clear vote of confidence in Musk's leadership, who he publicly thanked for the support he received.
After the vote, Tesla shares rose and closed with a increase of 4,48% in New York.
To collect the money he will have to go through court
Il vote in favor of Tesla's general assembly it will not automatically guarantee that Musk will receive the block of shares. The agreement was initially authorized, but later overturned by a Delaware court. In 2018, a majority of 73% of shareholders had approved the granting of the package, which provided that Musk received approximately 300 million Tesla shares in installments at the 2018 price, if the company achieved a series of objectives within ten years. The goals included increasing Tesla's market value from about $50 billion to $650 billion, which was exceeded, bringing the company to a value of more than $1.000 trillion. Today the value of Tesla, with the recent decline in demand, is about $580 billion on Wall Street.
Tesla shareholders, however, are opposed to remuneration taking the case to court calling Musk's compensation package excessive and unreasonable. During the process, they emerged controversies over subjection of the Tesla board of directors at Musk's will, as it is made up of many of his loyalists, including his brother. This situation has raised doubts about the transparency and independence of the council's decisions. Ultimately, the Delaware court ordered the package cancellation, calling it “potentially the largest in the history of the markets,” and demanded the return of the funds.
Musk and the tug-of-war with shareholders
Around the maxi pay bonus for Musk, aintense battle among the shareholders. Among those who spoke out against it were the Norwegian Sovereign Fund and the Californian pension fund, the largest in the country. Glass Lewis' proxy advisors had also recommended voting against.
The president of Tesla, Robyn Denholm, contributed to the positive outcome of the vote by explaining in a letter to shareholders that the huge bonus in shares, distributed over a decade, was essential to keep Elon Musk's attention and motivate him not to abandon the company
The change of location to Texas was also approved
During the meeting, the proposal to move Tesla's registered office from Delaware to Texas was also voted on, a move linked to the "anti-bonus" ruling of the Delaware court and aimed at transferring the headquarters to a most favorable jurisdiction to Musk's managerial policies.
