Tesla shareholders overwhelmingly voted in favor of Elon Musk’s $56 billion pay package and the relocation of the company’s legal headquarters to Texas. Notably, Elon Musk has lauded the development of the X platform, showing his gratitude for the Tesla shareholders.
Meanwhile, the decision marks a significant win for Musk amid ongoing legal challenges and scrutiny over his role at Tesla. Besides, the majority support for the Tesla pay package has also been lauded by the crypto community.
Elon Musk Lauds Tesla Shareholder’s Pay Package Support
The leading EV maker Tesla has caught the eyes of the market, as the majority of its shareholders are voting to approve the $56 billion pay package. In addition, the shareholders have also voted in favor of Tesla’s legal home transfer to Texas, marking a significant development.
In addition, the voting, which Musk celebrated on social media, signifies broad confidence in his leadership despite ongoing legal disputes. Notably, Elon Musk has also shared his gratitude towards the shareholders for their support.
The pay package plan was initially laid out in 2018 and has attracted market attention due to its controversial position. Notably, it represents the largest pay deal in U.S. corporate history, which the Tesla board believes should be given to Elon Musk for hitting specific market value, revenue, and profitability milestones.
However, the plan had been previously invalidated by a Delaware judge, who criticized the Tesla board for granting Musk an “unfathomable” amount and failing to ensure proper shareholder consent. Despite that, the board’s decision to put the package to a shareholder vote aims to strengthen its appeal against the ruling, signaling confidence in Musk’s critical role in Tesla’s success.
Also Read: Elon Musk Drops the Lawsuit on OpenAI For Breach of Mission, What’s Next?
Crypto Community Reacts
Elon Musk’s pay package and the decision to relocate Tesla’s legal headquarters have stirred reactions beyond the company’s shareholder base. The netizens, especially the crypto community reacted as Elon Musk shared the latest development on the X platform.
For context, Dogecoin co-founder Billy Markus, also known as Shibetoshi Nakamoto, has celebrated the development shared by Elon Musk. Besides, he also slammed the “Delaware Judge” in his comment on the social media platform.
On the other hand, Cardano co-founder Charles Hoskinson praised the majority support for the Tesla pay package, criticizing Delaware’s legal system for attempting to divert shareholder funds to lawyers. In addition, Hoskinson also voiced against incorporating in Delaware, citing Elon Musk’s case as evidence of a biased system.
Meanwhile, some large shareholders, including Norway’s sovereign wealth fund and California’s largest pension funds, opposed the pay package due to the robust amount. However, despite that, Tesla has actively campaigned for support, particularly from its retail investors who often do not participate in voting.
Following the development, Tesla stock price rose 6.5% in the pre-market session to $188.88 on June 13, after closing at $177.29 on the previous day.
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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
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