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TeslaCEOElon Muskhas secured enough shareholder votes to have his 2018 stock choice recompense package O.K. . Shareholders also approve the fellowship ’s conclusion to re - incorporate Tesla in Texas , moving it aside from the state where Musk ’s earnings package was struck down : Delaware .
shareowner present at the party ’s annual group meeting Thursday , held at Tesla ’s Texas gigafactory , hearten and gave a standing ovation when ecumenical counsel Brandon Ehrhart announced the results of the vote . The gross profit of triumph was not immediately clean .
“ I just want to get going off by say : Hot damn , I love you Guy , ” Musk order as he leapt around on the stage Thursday . “ I think we ’re not just open up a new chapter for Tesla , we ’re commence a young ledger . ”
The votes in favour of Musk ’s 2018 stock option honor – which could mean he gets a payout of up to $ 56 billion , the big CEO recompense package in history – does n’t ensure that he ’ll get it . The judge in Delaware who decided to lift it still has to come forth her final ruling .
Her post - trial judgement issued in January came after a years - foresightful sound battle . Tesla shareowner Richard Tornettafiled a suitin 2019 to revoke Musk ’s wage deal , claiming at the meter that Musk was a part - clip CEO getting an inequitable amount of money without the board demanding he sharpen alone on Tesla .
That causa and the evidence presented at trial lead the justice , chancellor Kathaleen McCormick to void the pay package , ruling that it was unjust . She said at the time that shareholders were n’t in full inform at the time of the right to vote because Tesla did n’t properly break Musk ’s restraint over the appendage of constructing the wage parcel .
Supporters of Tesla and Elon Musk have in the last few week posted relentlessly on cristal in favour of the CEO ’s remuneration package . Musk has engagedwith many of those posts , which has led to a flurry of regulative filing as Tesla make for to get across its proxy program line bases this time around .
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That say , stockholder are still potential to sue Tesla and Musk for approving a pay computer software for a CEO whose meter is divided between several other companies , include xAI , SpaceX and Neuralink . In fact , Tesla and Musk have been sued twice this week : Once by shareowner who claimedMusk made billionsselling Tesla stock in 2021 and 2022 using insider information , and again by separate shareholder for starting xAI , a vie AI troupe , and diverting talent and resources to it .
The fear of Musk ’s pay package being blocked by the court is likely why Tesla tug to reincorporate in Texas , where the automaker distinctly thinks it ’ll get less of a challenge in the motor lodge .
After McCormick of the Delaware Court of Chancery egress her opinion earlier this yr , Musk posted on X : “ Never incorporate your society in the body politic of Delaware . ” He thenposted a pollasking whether Tesla should vary its state of incorporation to Texas , and now we ’re here .
Unsurprisingly , none of the five stockholder proposals that would require Tesla to up its ESG biz passed – things like annual reporting on anti - harassment and favoritism endeavour , borrowing of corporate bargaining , and acquire target and reporting for mix sustainability metrics into senior executive director compensation design . The plug-in recommend that shareholders vote against all of them , and typically , whatever the plug-in commend , Tesla shareholders go with .
Two shareowner proposals did run . The first boil down director terms to one year , and the second demand simple majority voting supplying in Tesla ’s governing text file .
