Tesla’s annual shareholder meeting confirmed the generous system of bonuses and incentives worth tens of billions of dollars that the board of directors had guaranteed to the company’s CEO Elon Musk in 2018: today it is worth a total of around 48 billion dollars . It had recently been overturned by a Delaware court, which deemed this compensation disproportionate, unjustified and against the company’s economic interests, and that Musk would have obtained it only thanks to his ability to influence the board.
Musk has appealed, and the shareholders’ vote will have no effect on the ongoing legal case: that is, he will not have the power to overturn the outcome of the sentence, but it is a big sign of confirmation of confidence in the CEO, a signal that Musk will in turn be able to claim during the trial to affirm the legitimacy of the remuneration package.
During the meeting, Musk’s proposal to move the company’s registered office from Delaware to Texas was also voted on. Also in this case the vote will have no legal effects on the ongoing case, but it was an expected decision because since the local court’s ruling Musk had started a massive media campaign against the state of Delaware.
It is a state in which many companies and multinationals have their headquarters due to very advantageous taxation (including Amazon), but Musk on numerous occasions – and https://twitter.com/elonmusk/status/1757924482885583112?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1757924482885583112%7Ctwgr%5Ee8fa7dfaa693c9db6c9566d6e3aea5c2a6c17544%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fwww.ilpost.it%2F2024%2F02%2F15%2Ftesla-sede-legale-texas%2F, the social network he owns – said that it is no longer good business for companies to continue having headquarters there, due to the bias of the judicial system. For the same reasons Musk had already moved the headquarters of his company SpaceX from Delaware to Texas.
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