Elon Musk wins vote on US$56bil pay package

The Star

Elon Musk has won shareholder approval for his US$56bil pay package at Tesla, which is a record sum in US corporate history. The result of the vote was announced at the company's annual general meeting in Texas on June 13.  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

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00:00Tesla, on Thursday, convinced its investors to ratify CEO Elon Musk's $56 billion U.S.

00:07dollar pay package.

00:09The electric vehicle manufacturer said the shareholders had approved the package, which

00:14is a record sum in U.S. corporate history.

00:17But analysts said the company now faces the harder part to persuade a Delaware judge to

00:22recognize it in legal suits filed by the company's investors.

00:26Well, the vote today is part of a legal strategy that Tesla has to try to recover from the

00:31loss in court in January, where the court found that the options that were granted to

00:39Elon Musk as part of a 2018 pay package were not fair to the corporation, so she voided

00:45the package.

00:46Last night, he announced on Twitter, X, that he won the vote.

00:51And it's a bit of an overstatement to say that he won.

00:53What he really should be saying is, I now have a piece of evidence that I can put before

00:57a judge to say that the judge should reinstate my stock option package.

01:02This vote is not binding on the court.

01:05The stock option package, as it currently stands, has been voided.

01:08And they'll be litigating in the Delaware courts for the next few months to see if that

01:14will stand as is.

01:15A final legal result in Musk's favor is not certain and will not be quick.

01:20The Delaware judge rescinded the pay package in January because she found that Musk improperly

01:25controlled the 2018 board process to negotiate it.

01:30She also ruled that Tesla failed to fully inform investors before they voted for it.

01:36Right now, the parties are arguing in court about how much the plaintiff's lawyers should

01:42be paid for their work in winning the trial in January.

01:46And what the company is going to say, the board is going to say, well, you know, maybe

01:50they won in January.

01:51But since we went back to the stockholders, the stockholders said it's all OK, given what

01:55they everything they know about the company and what happened at the board at the time.

01:59So really, this is all moot.

02:01And the court should just dismiss the case.

02:05Tesla announced the result of the 56 billion U.S. dollar pay package vote at its annual

02:11general meeting in Texas on Thursday.

02:14Tesla's also approved a plan to move Tesla's legal home from Delaware to Texas.

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