Tesla Inc. shareholders on Thursday reapproved a controversial multimillion-dollar compensation package for CEO Elon Musk.
The 2018 compensation agreement, now reportedly worth more than $45 million, was invalidated by a Delaware judge in January. Thursday’s vote confirmed shareholder support for the compensation package but does not resolve the legal dispute.
Court of Chancery Judge Katherine McCormick found that the package, which would have given Musk 1% of the company for each of the 12 final milestones reached, was not fairly negotiated.
Tesla’s board of directors has asked shareholders in recent weeks to re-approve Musk’s compensation package.
“We disagree with the Delaware court’s decision and do not believe that it represents what corporate law should or does,” board chair Robin Denholm said in a letter to shareholders.
“So we’re asking you to help us solve this problem. This is about fundamental fairness and respect for the CEO,” she continued. “You have an opportunity to reinstate your vote and make it count.”
The approval of the compensation package and Tesla’s reincorporation in Texas was greeted with jubilation at the company’s annual shareholder meeting on Thursday.
Musk previewed the results of the two votes late Wednesday night, announcing on his social media platform, X, that both proposals had passed by “vast margins.”
“Thank you all so much for your support,” he added.
