Tesla Shareholders Approve C.E.O. Elon Musk’s Pay Package
What was the value of the pay award reaffirmed for Elon Musk by Tesla shareholders?
The value of the pay award reaffirmed for Elon Musk by Tesla shareholders was more than $45 billion3. This decision was made at Tesla's annual meeting at its headquarters in Austin, Texas. The pay award is made up of stock options and the vote result serves as a strong sign of shareholders' continued belief in Mr. Musk's leadership. It could also potentially persuade the judge who initially voided the award to reinstate it.
Where and when was the announcement of the shareholders' vote result made?
The announcement of the shareholders' vote result was made at Tesla's annual meeting at its headquarters in Austin, Texas, on Thursday.
Why was Elon Musk's pay award initially thrown out in a legal challenge?
Elon Musk's pay award was initially thrown out in a legal challenge due to a Delaware judge ruling that Tesla's board of directors failed to prove the compensation was reasonable5. The judge found that the process leading to the board's approval of Musk's compensation was "deeply flawed" and that Musk "controlled Tesla," making the decision unfair to shareholders3. The judge also pointed out inaccuracies in the proxy statement, which described key directors as independent and omitted details about the process.