33.6 C
New York

Tesla asks investors to OK Musk’s 56 billion dollar pay again

Published:

Tesla will ask

shareholders

to

vote

again on the same $56 billion

compensation package

for CEO Elon Musk that was voided by a

Delaware court

early this year.
In its proxy filing issued on Wednesday, Tesla also said it will call a vote on moving the company’s state of incorporation to Texas from Delaware. The carmaker will convene its

annual meeting

on June 13.
Tesla chair Robyn Denholm criticised the Delaware Chancery Court’s Jan decision, writing in the proxy that it amounted to second-guessing shareholders who had approved Musk’s performance-based award in 2018.

Chief Judge Kathaleen St J McCormick described the company’s directors as “supine servants of an overweening master” and said they hadn’t looked out for the best interests of investors.
The shareholder who sued Tesla over the CEO’s compensation criticised it as excessive and opaque. Musk, who runs six companies, said early this year he preferred to work on AI and robotics products elsewhere unless he owns a 25% stake in Tesla. He currently owns about 13% of the company,. Earlier this week, the company announced plans to cut global headcount by more than 10%.

Related articles

Recent articles

spot_img