Tesla wants shareholders to vote again on Musk's $56 billion payout

2024-12-24 21:48:38 source: category:Contact-us

Forbes releases billionaires list
Forbes releases billionaires list 00:38

Tesla is asking shareholders to vote again on Elon Musk's $56 billion pay package in 2018 after a Delaware judge nullified the biggest compensation plan in corporate America. 

In a proxy filing published Wednesday, the electric-car manufacturer also stated it would hold a vote on moving its state of incorporation to Texas from Delaware. Tesla is set to hold its annual shareholders meeting on June 13.

The request comes days after news that Tesla would reduce its headcount by 10% globally, or about 14,000 people. In a letter to stockholders, Tesla cited the need to carefully manage its resources for its decision.

  • SpaceX moves incorporation to Texas, as Elon Musk continues to blast Delaware.

In looking to re-ratify Musk's 2018 pay package, Tesla argued that "corporate democracy and stockholder rights" are at stake, telling shareholders the court had "rescinded the pay package that an overwhelming majority of you voted to grant."

A Delaware judge in late January threw out the share-based payout, calling it an "unfathomable sum" and unfair to shareholders. In her ruling, the judge accepted the shareholder lawyers' argument that Musk personally dictated the landmark pay package in sham negotiations with directors who were not independent.

The ruling had some investors anticipating that Tesla might revamp its governance, as the board had long faced criticism for not reining in its controversial CEO as Musk battled with advertisers and regulators.  

Kate Gibson

Kate Gibson is a reporter for CBS MoneyWatch in New York.

More:Contact-us

Recommend

John Robinson, successful football coach at USC and with the LA Rams, has died at 89

LOS ANGELES (AP) — John Robinson, the veteran football coach who enjoyed many years of success at th

At Northwestern, students watch climate change through maple trees

EVANSTON, Ill. (AP) — Big Mama has seen a lot of students passing by in her 120 years. So have Littl

Alabama clinic resumes IVF treatments under new law shielding providers from liability

MONTGOMERY, Ala. (AP) — At least one clinic in Alabama has resumed in vitro fertilization treatments