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Sunday July 14, 2024

'I love you guys,' says Elon Musk after winning pay deal worth $56bn

Space X founder has also announced to move Tesla's legal headquarters from Delaware to Texas

By Web Desk
June 14, 2024
Musk hails ‘awesome shareholder base’ after vote to restore compensation deal rejected by US judge. — Reuters/File
Musk hails ‘awesome shareholder base’ after vote to restore compensation deal rejected by US judge. — Reuters/File

In a significant win, Tesla shareholders have voted to restore a record-breaking pay package for chief executive Elon Musk.

The multibillionaire fought tenaciously for the payoff, which is worth up to $56 billion (£43.9 billion), BBC reported.

The exact amount depends on Tesla's share price.

Expressing his happiness, Musk, while talking to a group of shareholders who had assembled in Texas for the annual meeting of the company, said, "Hot damn, I love you guys. We have the most awesome shareholder base. I mean, it’s just incredible."

The huge pay amount has drawn severe criticism and concerns as the board has been accused of being too submissive to Musk.

However, the vote is not binding, and legal experts have said it is not clear if a court that blocked the deal will accept the re-vote and allow the company to restore the pay package.

According to Mathieu Shapiro, a managing partner at law firm Obermayer Rebmann Maxwell and Hippel, "The vote changes nothing."

The Space X founder has also announced to move Tesla's legal headquarters from Delaware to Texas after judge Kathaleen McCormick in Delaware described the pay package as "unfathomable" and sided with a small investor who had sued over the deal.

In response, Tesla decided to conduct a review and asked its shareholders to back a plan to reincorporate the company outside the state of Delaware.