{"id":4210,"date":"2024-06-14T11:38:36","date_gmt":"2024-06-14T11:38:36","guid":{"rendered":"https:\/\/digitaltradecenter.com\/index.php\/2024\/06\/14\/musk-cheers-wide-margin-of-support-for-record-56bn-tesla-pay-package\/"},"modified":"2024-06-14T11:38:36","modified_gmt":"2024-06-14T11:38:36","slug":"musk-cheers-wide-margin-of-support-for-record-56bn-tesla-pay-package","status":"publish","type":"post","link":"https:\/\/digitaltradecenter.com\/index.php\/2024\/06\/14\/musk-cheers-wide-margin-of-support-for-record-56bn-tesla-pay-package\/","title":{"rendered":"Musk cheers \u2018wide margin\u2019 of support for record $56bn Tesla pay package"},"content":{"rendered":"
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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> 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

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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><\/p>\n

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

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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> believes it will, then the issue moves back to the court for ratification.<\/p>\n

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

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

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

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>\n

This post appeared first on sky.com<\/div>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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":1,"featured_media":4211,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[],"class_list":{"0":"post-4210","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-science"},"_links":{"self":[{"href":"https:\/\/digitaltradecenter.com\/index.php\/wp-json\/wp\/v2\/posts\/4210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitaltradecenter.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitaltradecenter.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitaltradecenter.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/digitaltradecenter.com\/index.php\/wp-json\/wp\/v2\/comments?post=4210"}],"version-history":[{"count":0,"href":"https:\/\/digitaltradecenter.com\/index.php\/wp-json\/wp\/v2\/posts\/4210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitaltradecenter.com\/index.php\/wp-json\/wp\/v2\/media\/4211"}],"wp:attachment":[{"href":"https:\/\/digitaltradecenter.com\/index.php\/wp-json\/wp\/v2\/media?parent=4210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitaltradecenter.com\/index.php\/wp-json\/wp\/v2\/categories?post=4210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitaltradecenter.com\/index.php\/wp-json\/wp\/v2\/tags?post=4210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}