Tesla shareholders approve Musk's $48-billion compensation package

Approval comes months after court's rejection of Musk's pay

Tesla shareholders approve Musk's $48-billion compensation package

The massive compensation package of Tesla CEO Elon Musk has received the approval of the company's shareholders, months after it was declared void in court.

Tesla revealed in a filing to the Security and Exchange Commission (SEC) that approximately 84% of security holders voted in favour of the package. The voters did not include shares held by Musk or his brother Kimbal Musk, who did not vote.

Musk posted about the results of the vote on X, where he said: "Thanks for your support!!"

Source: X

The compensation package was worth over $48 billion as of Thursday, CNN reported, including 303 million options to buy Tesla shares at a drastically reduced price. But that  was worth $51 billion when it was voided by a Delaware judge nearly five months ago.

The judge previously ruled that the package was "deeply flawed" and that Musk and the board didn't meet the "burden of proving that the compensation plan was fair."

The ruling also pointed out that the board's close ties with Musk, noting that one was a personal friend of the CEO and another was his former divorce attorney.

Transfer to Texas

Meanwhile, the vote also included a proposal to transfer Tesla to Texas, which was also favoured by 63% of shares, according to the SEC filing.

Source: X

Texas Governor Greg Abbott congratulated Musk on the transfer, and on "getting the pay" he was promised.

"Tesla Shareholders approve corporation move to Texas. It was meant to be," Abbott said on a separate X post. "Welcome to the Lone Star State."

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