Tesla Vote on Musk’s Massive Pay Plan: What You Need to Know
- Investors voted ahead of meeting Thursday on voided pay deal
- Here’s what happens next on compensation, Texas incorporation
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Tesla Inc. shareholders have voted in favor of resurrecting Elon Musk’s $56 billion pay package from 2018 that a Delaware judge shot down, and to move the electric-car maker’s legal home to Texas.
The votes ahead of the company’s annual meeting on Thursday gave investors a say on both proposals, though the compensation proposal has no binding legal power. It’s widely seen as a referendum on Musk’s leadership amid a recent sharp decline in Tesla’s shares, and could play a role if the chief executive officer and world’s third-richest person loses an appeal of Delaware Chancery Judge Kathaleen St. J. McCormick’s January decision.