Tesla shareholders reinstate Musk's $44.9 billion pay package

Despite a Delaware judge's earlier rejection, Tesla stockholders voted in favor of CEO Elon Musk's compensation plan.

Tesla shareholders reinstate Musk's $44.9 billion pay package
Sebastian Christoph Gollnow/dpa via AP
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At Tesla's annual meeting in Austin, Texas, on Thursday, shareholders voted to reinstate CEO Elon Musk's $44.9 billion pay package, which had been previously tossed out by a Delaware judge earlier this year.

The Associated Press reported the stockholders approved the restoration of Musk's compensation plan, which was initially approved by the board and shareholders six years ago.

The package, once valued at as much as $56 billion, has seen its value drop alongside Tesla's stock, with the company's most recent regulatory filing placing its worth at $44.9 billion.

In January, Judge Kathaleen McCormick deemed the pay "unfathomable" and found that Tesla's board members lacked independence from Musk during the initial vote on the plan.

She also stated that the board failed to provide shareholders with complete details before the vote, according to CNBC.

The Associated Press noted Musk's package is likely to remain tied up in the Delaware Chancery Court and Supreme Court for months as Tesla attempts to overturn the rejection. In another vote at the meeting, shareholders approved moving Tesla's home state from Delaware to Texas.

During the gathering at Tesla's headquarters in Austin, Musk expressed his enthusiasm to the crowd, stating, "It's incredible. I think we're not just opening a new chapter for Tesla, we're starting a new book."

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