Tesla Inc. (NASDAQ:TSLA) shareholders approved the pay compensation package plan for CEO Elon Musk that was originally approved in 2018, during the annual shareholders meeting. The next step for Musk is reportedly to convince a skeptical Delaware judge to approve his $56 billion pay package after securing shareholder support.
What Happened: Despite strong backing from small investors, recent declines in sales and stock prices have led to notable opposition. The pay package faces months of litigation before shares can be awarded to Musk, Reuters analyzed on Thursday.
“A vote by shareholders wouldn't cause an automatic reversal of Chancellor [Kathaleen] McCormick's decision. We are in uncharted waters here,” said Samantha Crispin, corporate attorney at Baker Botts.
In January, Judge McCormick of Delaware’s Court of Chancery voided the pay deal, citing Musk’s undue influence over the 2018 board process and insufficient ...