Musk gets Tesla shareholders Ok to his $ 56 bn pay package

Elon Musk

Rama Krishna Sangem

Tesla shareholders approved CEO Elon Musk’s $56 billion pay package, the electric vehicle-maker said on June 13  Thursday, a big thumbs-up to his leadership and an incentive to keep his focus on his biggest source of wealth.

The approval underscores the support that Musk enjoys from Tesla’s retail investor base, many of whom are vocal fans of the mercurial billionaire. The proposal passed despite opposition from some large institutional investors and proxy firms.

Onstage at the annual shareholder meeting in Austin, Texas, Musk described himself as pathologically optimistic. “If I wasn’t optimistic this wouldn’t exist, this factory wouldn’t exist,” Musk said to applause. “But I do deliver in the end.

Onstage at the annual shareholder meeting in Austin, Texas, Musk described himself as pathologically optimistic. “If I wasn’t optimistic this wouldn’t exist, this factory wouldn’t exist,” Musk said to applause. “But I do deliver in the end. That’s the important thing.” He had tipped off late on Wednesday that the proposals were garnering huge support.

 

Lawsuit in Delaware

The approval does not, however, resolve a lawsuit on the pay package in a Delaware court, which some legal experts think could stretch out for months. The judge invalidated the pay package in January, describing it as “unfathomable.” Musk may also face fresh lawsuits on the package, which would be the largest in U.S. corporate history. Shareholders had voted for this package in 2018.

“This thing is not over,” said Brian Quinn, a professor at Boston College Law School. The Delaware judge will scrutinise the vote and require Tesla to prove the process was not coerced or improperly influenced by Musk, he said.

The judge had criticised Tesla’s board as “beholden” to him, saying the plan was proposed by a conflicted board with close personal and financial ties to its top executive.

On Thursday, shareholders also approved a proposal to move the company’s legal home to Texas from Delaware. They also approved other proposals including the re-election of two board members: Musk’s brother Kimbal Musk and James Murdoch, son of media mogul Rupert Murdoch.

Shareholders did increase the level of investor control by passing proposals in favor of shortening board terms to one year and lowering voting requirements for proposals to a simple majority, despite board opposition to both.

Rama Krishna Sangem

Ramakrishna chief editor of excel India online magazine and website

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Rama Krishna Sangem

Excel India national news magazine is a media startup founded and piloted by Rama Krishna Sangem, a Hyderabad based senior journalist with over three decade experience in the field of media, mostly in print journalism. His rich experience in reporting for both Telugu and English newspapers and heading a TV news channel and some online outfits will be of immense use to this venture. Excel India English news magazine seeks to fill the gap of analytical understanding to our readers who today are confronted with myriad media platforms. Our online version not only offers regular updates and commentary on happenings around us, but also gives larger stories not limited by space constraints of a print magazine. Excel India is ably run by a team of senior journalists committed to values and quality standards in the profession. We urge you all to support and guide us in this endeavour. Reach us at excelindiaweb123@gmail.com