Tuesday, July 23, 2024

Elon Musk Wins Record-Breaking Pay Package Worth $56 Billion

Tesla’s CEO, Elon Musk, has been awarded a huge pay package worth $56 billion. This decision came after Tesla shareholders voted in favor of it during their annual meeting in Texas.

This re-vote was necessary because a small investor had sued, and a judge in Delaware criticized the pay package, calling it “unfathomable.” The judge’s comments came after the package was struck down by a Delaware court in January 2024.

Musk also took this opportunity to announce that Tesla’s legal headquarters will move from Delaware to Texas. This move raised concerns among some people who believe the company’s board is too submissive to Musk.

Even though the shareholders voted in favor of the pay package again, this vote is not binding. Legal experts are uncertain if the court will accept this new vote, considering the previous ruling against the pay package. The original $56 billion compensation plan was initially approved back in 2018, but its future remains unclear after the legal challenges.

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