{"id":71938,"date":"2024-06-13T08:23:24","date_gmt":"2024-06-13T08:23:24","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/13\/musk-cheers-wide-margin-of-support-for-record-56bn-tesla-pay-package\/"},"modified":"2024-06-13T08:23:24","modified_gmt":"2024-06-13T08:23:24","slug":"musk-cheers-wide-margin-of-support-for-record-56bn-tesla-pay-package","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/13\/musk-cheers-wide-margin-of-support-for-record-56bn-tesla-pay-package\/","title":{"rendered":"Musk cheers ‘wide margin’ of support for record $56bn Tesla pay package"},"content":{"rendered":"
\"Musk<\/div>


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Elon Musk has claimed a “wide margin” of support among Tesla shareholders for a $56bn pay package due to him but which was blocked by a court.<\/p>\n

A new shareholder vote was ordered after a judge in Delaware ruled in January<\/strong><\/a> that the 2018 awards had effectively been controlled by the billionaire, as the board had close personal and financial ties to Tesla’s founder and chief executive.<\/p>\n

The $56bn (\u00a343.4bn) figure – the highest award ever seen in corporate America – does not consist of salary or bonus pots.<\/p>\n

Money latest:<\/strong>
Budget airline ranks worst for delays for third year running<\/strong><\/a><\/p>\n

The sum arises purely out of rewards for Tesla meeting revenue and market value targets over 10 years.<\/p>\n

Tesla said that investors were given full disclosure, including the court’s ruling, ahead of the fresh pay ballot.<\/p>\n

If it passes, as Musk<\/strong><\/a> believes it will, then the issue moves back to the court for ratification.<\/p>\n

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Legal experts have said the process is unprecedented and could take months – complicated by possible challenges to the shareholder vote result.<\/p>\n

In addition to the pay issue, Tesla is asking investors to approve moving its headquarters away from Delaware to Texas.<\/p>\n

At the time of the Delaware court ruling, Musk had written on X: “Never incorporate a company in the state of Delaware.”<\/p>\n

“Thanks for your support!!” Musk said in a fresh post aimed at Tesla investors early on Wednesday.<\/p>\n

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Texas governor Greg Abbott responded: “Welcome to a state that has neither a personal nor a corporate income tax.”<\/p>\n

The results are due to be declared on Thursday night.<\/p>\n

While Musk is confident of winning the day, there has been opposition.<\/p>\n

Major proxy firms Glass Lewis and Institutional Shareholder Services had urged shareholders to reject the pay package.<\/p>\n

Large investors who declared opposition included Norway’s sovereign wealth fund.<\/p>\n

Read more:<\/strong>
Tesla investors urged to block ‘excessive’ payday<\/strong><\/a>
Musk faces fresh insider dealing claim<\/strong><\/a><\/p>\n

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Their concerns, which undoubtedly include the $56bn sum, will likely extend to share performance since their 2021 peak.<\/p>\n

Tesla’s stock has lost nearly 60% of its value since that time.<\/p>\n

Then, Musk started selling billions of dollars worth of his Tesla stake partly to help finance his purchase of Twitter, which he renamed X.<\/p>\n

More recently, the stock has suffered due to falling sales. Other worries include pressure on his time as his wider interests also include SpaceX and artificial intelligence firm xAI.<\/p>\n

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Please use Chrome browser for a more accessible video player<\/p>\n


\n \"SpaceX\"
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\n 2:08<\/span>
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Musk’s Starship rocket splashes down<\/span>
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The Tesla board has argued that Musk deserves the package because he hit all the ambitious targets on market value, revenue and profitability set at the time.<\/p>\n

It also said that a positive vote would help convince Musk to remain devoted to Tesla.<\/p>\n

Columbia Law School Professor Zohar Goshen told the Reuters news agency he thought the Delaware court decision should reverse itself.<\/p>\n

He said: “It is hard to estimate how the court will rule because there is too much noise around this decision. But my personal view is that Tesla should succeed.”<\/p>\n<\/p><\/div>\n


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Elon Musk has claimed a “wide margin” of support among Tesla shareholders for a $56bn pay package due to him but which was blocked by a court. A new shareholder vote was ordered after a judge in Delaware ruled in January that the 2018 awards had effectively been controlled by the billionaire, as the board […]<\/p>\n","protected":false},"author":2,"featured_media":71939,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/e3.365dm.com\/24\/03\/512x512\/skynews-gfxwhatsapppromo-gfxwhatsapp_6490206.png","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[33364,2300,10409,6039,796,795,1541,864,3489,28609],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/71938"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=71938"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/71938\/revisions"}],"predecessor-version":[{"id":71940,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/71938\/revisions\/71940"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/71939"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=71938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=71938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=71938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}