July 21, 2024

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Elon Musk drama intensifies as Tesla shareholders vote on his $56B pay package: Here’s what’s at stake

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Today Tesla shareholders will finally answer a $56 billion question hanging over the company: Can CEO Elon Musk keep his record-breaking pay?

While Musk posted late Wednesday night that the votes were trending for passage of his pay package, official word won’t come down until later today — though Tesla shares are jumping in the pre-market.

Securing Musk’s compensation, if truly passed by investors, did not come without a battle.

To review: Musk’s all-stock pay package, awarded in 2018, has been embroiled in controversy and was struck down by a Delaware court earlier this year, with the judge finding that Tesla’s board didn’t act “in the best interests” of Tesla shareholders by approving the $56 billion award.

Since then, Musk and Tesla’s board, led by chair Robyn Denholm, have been advocating rather forcefully for Tesla shareholders to approve a newly submitted pay package, which is very similar to the original 2018 award invalidated by the judge.

LOS ANGELES, CALIFORNIA - APRIL 13: Elon Musk attends the 10th Annual Breakthrough Prize Ceremony at Academy Museum of Motion Pictures on April 13, 2024 in Los Angeles, California. (Photo by Axelle/Bauer-Griffin/FilmMagic)

Will he get a raise? Tesla CEO Elon Musk is pictured at the Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures on April 13, 2024, in Los Angeles. (Axelle/Bauer-Griffin/FilmMagic) (Axelle/Bauer-Griffin via Getty Images)

On the eve of those results, Musk and Tesla are getting assailed from a number of fronts.

Late Tuesday the Employees’ Retirement System of Rhode Island (ERSRI) filed another lawsuit in Delaware accusing Musk and his brother Kimbal Musk of selling a combined $30 billion of stock using inside information — that being the two knew the proceeds would be used to fund Elon’s purchase of Twitter (now X), and that two brothers were also aware that Tesla’s vehicle deliveries had fallen below projections.

Meanwhile the Wall Street Journal reported Elon Musk has joined recent meetings with proxy adviser Glass Lewis, and investors including “Vanguard, State Street and BlackRock, alongside Tesla Chair Robyn Denholm and others,” to drum up support for Musk’s pay package.

If that wasn’t…

2024-06-13 07:58:55

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