The result, announced on Thursday, comes as the billionaire tycoon fights to retain the largest-ever compensation package granted to an executive at a US-listed company.
“I just want to start off by saying, hot damn, I love you guys!” a gleeful Musk said as he appeared on stage following the vote.
The result is a victory for Musk and the Tesla board after they ardently campaigned for shareholders to approve the deal. It could serve as a rebuttal to the judge’s ruling that struck down the award – making it easier for Tesla’s board to argue that shareholders were properly informed about the payment package, and the board members’ ties to Musk, before casting their votes.
Tesla’s board warned Musk could turn away from the company if the package wasn’t approved, while Musk claimed on Wednesday evening that he had wide support of investors. (...)
The vote does not automatically mean that Musk will receive the money, however, and there are likely to be further disputes. There are still numerous legal arguments around whether the board can be considered independent, and whether the package can be considered fair after the judge ruled otherwise.
It is also possible new lawsuits may arise over the vote, potentially bringing the case back in front of a judge and raising the prospect of a protracted legal battle. Shareholders also approved a measure to move Tesla’s legal home from Delaware to Texas, potentially further complicating any challenges. (...)
Judge Kathaleen McCormick, who oversees Delaware’s court of chancery, ruled that Tesla’s board conducted a “deeply flawed” process to determine Musk’s payment. McCormick found that the board was rife with personal conflicts and stacked with Musk’s close allies, such as his former divorce attorney.
Tesla’s board, which is likely to appeal McCormick’s ruling, sought to remedy her decision with a shareholder vote. Despite McCormick’s criticism of the pay package, the board put forth the same deal that the judge rejected – albeit now worth less money due to a fall in Tesla’s share price.
by Nick Robins-Early, The Guardian | Read more:
Image: Gonzalo Fuentes/Reuters
[ed. Exhibit No. 1 in the decline of western civilization. 45 thousand millions. For one person. For Elon Musk. Even if Jesus and Einstein were co-CEOs of Tesla I'd call that an insane compensation package. Any Tesla shareholder who voted in favor of this travesty should forever live in shame. For more background, see also: Tesla leads charge to defend Elon Musk’s $56bn pay package (Guardian).]
