Tesla shareholders vote yes again to approve Elon Musk’s $56B pay plan

Tesla shareholders approve Elon Musk's $56B compensation plan, despite previous legal challenges in Delaware, and vote to re-incorporate in Texas.

: Tesla shareholders voted to approve Elon Musk's $56B stock option plan and move the company incorporation from Delaware to Texas. This decision followed legal challenges and earlier court rulings that voided the package. Supporters of Musk's pay plan celebrated, but additional lawsuits may arise.

Tesla shareholders have approved a $56 billion stock option compensation package for CEO Elon Musk, originally struck down in Delaware due to claims of unfairness and lack of full disclosure. Simultaneously, they voted in favor of re-incorporating Tesla in Texas, likely seeking a more favorable legal environment to defend such decisions. The acceptance of Musk's pay package does not guarantee the payout yet, pending a final ruling from Delaware's court.

Shareholders showed strong support during the annual meeting held at Tesla's Texas gigafactory, with cheers and standing ovations when the results were announced. Despite this, the company and Musk have faced numerous legal battles, including recent suits about insider trading and resource diversion to Musk's other ventures like xAI. The continued legal ramifications signify potential ongoing scrutiny and legal challenges ahead.

Additionally, shareholders rejected proposals aimed at enhancing ESG measures, such as anti-harassment reporting and collective bargaining adoption, sticking with board recommendations. However, two stockholder proposals did pass, reducing director terms to one year and instituting simple majority voting provisions. This reflects a complex shareholder landscape, divided between strong support for Musk and gradual structural changes within the company.