Tesla Shareholders to Decide on Musk's Pay and Relocation
- Shareholders to vote on reinstating Musk's $56 billion pay package
- Proposal to relocate Tesla's state of incorporation to Texas
Tesla shareholders are preparing to vote on CEO Elon Musk's 2018 pay package, which was previously rescinded by a Delaware court. The package, valued at $56 billion at the time of the award, is being reconsidered for reinstatement by the board. The pay package was initially approved in 2018, providing Musk with equity as Tesla's market cap increased and operational targets were achieved. However, it was nullified in January due to concerns over shareholder interests.
Shareholders will also vote on the proposal to relocate Tesla’s state of incorporation from Delaware to Texas, where the company's headquarters are currently based.
A faction of shareholders, including Amalgamated Bank and SOC Investment Group, is encouraging investors to reject Musk's pay package. They contend that Musk is not prioritizing Tesla’s interests because of his engagement in other ventures. This group also advises voting against the reelection of directors Kimbal Musk and James Murdoch, due to significant governance issues within Tesla that need immediate resolution.