Elon Musk says Tesla shareholders voting to back $56bn pay deal

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Electric carmaker’s CEO faces crunch vote before its AGM over biggest pay package in US corporate history

Elon Musk’s pay deal is subject to a shareholder vote after it was thrown out by a US judge earlier this year.Elon Musk’s pay deal is subject to a shareholder vote after it was thrown out by a US judge earlier this year.Elon Musk has claimed Tesla shareholders are voting by a wide margin to approve his $56bn compensation package before the electric carmaker’s crunch annual general meeting later on Thursday.

The pay package, which is the highest ever awarded to the chief executive of a US company, is subject to an investor ballot after it wasRead more However, on Wednesday evening Musk suggested investors were voting in overwhelming numbers to approve the pay package, along with the move to Texas. He wrote on the social media platform X, formerly Twitter, that: “BothThe result of the vote will be announced at Tesla’s headquarters in Texas at 4.30pm ET .

Even if the pay package is approved, Musk is likely to face further hurdles including the possibility of further litigation. Law experts said there were questions about whether the Delaware court which blocked the pay deal would accept the new vote, which is not legally binding, and allow the pay package to be reinstated.

The pay award was originally agreed by Tesla’s board in 2018 but a Tesla shareholder filed a lawsuit over the compensation. In January the Delaware judge Kathaleen McCormick ruled the Tesla board had inappropriately set the “historically unprecedented compensation plan” and questioned whether the size of the award was even necessary to retain Musk at Tesla.

 

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