The pay package shareholders voted to approve was initially granted by Tesla to Mr. Musk in 2018.
Shareholders at Tesla on June 13 voted to ratify CEO Elon Musk’s $56 billion compensation package and approved a plan to move the electric vehicle maker’s legal headquarters to Texas.
On the social media platform X, which he owns, Mr. Musk shared what appeared to be two charts showing the results of the vote ahead of Tesla’s annual meeting in Austin, Texas.
The Space X founder said both shareholder resolutions were “currently passing by wide margins” but stopped short of disclosing the exact results of the vote.
“Thanks for your support,” he wrote.
The pay package shareholders voted to approve was initially granted by Tesla to Mr. Musk in 2018.
Under the compensation plan, Mr. Musk could secure 12 tranches of Tesla stock options, which would vest if Tesla achieved various market capitalization and operational “milestones,” such as a $50 billion increase in its market capitalization.
Judge Nullifies Musk Pay Package
However, a Delaware judge in January nullified the package, ruling that the company’s board of directors failed to prove the plan was fair and stating that the process leading to its approval was deeply flawed.
That decision was in response to a lawsuit filed by Tesla shareholder Richard Tornetta, who argued the multi-billion-dollar pay package was overly excessive and that the key milestones Mr. Musk had to achieve in order to receive the pay package were widely expected to be achieved and not, as they were described in proxy disclosures, very difficult.
The lawsuit further claimed that Mr. Musk himself came up with the compensation plan himself and that a proxy statement issued by Tesla wrongly characterized the board’s compensation committee and the board as “independent when they were not.”
