Tesla shareholders reapprove Elon Musk’s $56 billion dollar pay package after court setback

Tesla’s shareholders have once again given their nod to Elon Musk’s substantial compensation plan, months after it was struck down by a court in Delaware. At Tesla’s yearly gathering of stockholders, the investors endorsed a motion to reauthorize Musk’s remuneration, which is currently valued at approximately $48 billion, as reported by Bloomberg.

The pay package in question was originally sanctioned in 2018, valued then at $56 billion, and was described by Judge Kathaleen McCormick of the Chancery Court in Delaware as an “unfathomable sum.” This led to Musk hinting at relocating Tesla’s legal home base to Texas, a move that was formally approved by shareholders during the same meeting.

However, the green light from the shareholders for Musk’s pay does not ensure its reinstatement. As Bloomberg notes, the shareholder vote does not overturn the judge’s previous decision. Nonetheless, it is expected that Tesla will challenge the ruling, using the recent shareholder endorsement as proof that the pay package has the backing of its investors.

Musk expressed his satisfaction with the outcome of the vote. He jubilantly addressed the audience at the meeting, saying, “I just want to start off by saying, hot damn. I love you guys.” He also mentioned that the reapproval of his compensation would not influence his immediate dedication to Tesla. Musk emphasized that the compensation consists of Tesla stock, which he is required to hold for a period of five years, rather than liquid cash. He affirmed his commitment by stating that he has no intention to “cut and run.”