What can be considered the largest CEO payment package in corporate history has received the green light from Tesla’s investors; $56bn has been approved for Elon Musk. The decision is the latest development in Tesla’s long-running compensation battle after the same court struck down the 2018 plan last year.
The final approval of the shareholder vote, which will be announced officially on Thursday, 13th of Jun at Tesla’s headquarters in Texas, has been received happily with some neutral responses from people.
Some opinionated that Musk deserved the leadership role, the visionary that he was; others welcomed the news as a deserving reward for the hard work demonstrated; others voiced concern regarding the company and the possible implications of the staggering compensation package.
With over $90 billion allocated to the pay plan that was once called the largest ever in US corporate history, it has been criticized by some of its investors, such as Glass Lewis and Institutional Shareholder Services (ISS).
Nevertheless, it was possible to obtain the support of the large institutional shareholders and a significant portion of the shareholders holding Tesla securities back, which allowed Musk and the board of directors to implement the plan.
This is a big win for Musk, a win he revealed on his Twitter account, and many fans celebrated the victory as well.
“Hey guys, I just wanted to inform you that both Tesla shareholder resolutions are currently passing by very wide margins!”
He recently shared with his fans and thanked them for their support.
The approval of the pay package also fosters a better legal outlook for Tesla since the Company will have to defend itself in the Delaware Court. Before, a judge had annulled the 2018 pay scheme over the fear that the board was Indeed, a judge had previously quashed the 2018 multimillion pay formula, fearing that the board was loyal to Musk.
With mounting competition in this industry and this race, the decision of this shareholder meeting will certainly hold a lot of significance in the existence and furtherance of Tesla in the future. With this, Musk will now have more focus and drive to achieve more with this company, more resources and momentum to pursue more goals such as its electric car models and its self-driving technology.
